NEW YORK CITY—The storied Gramercy Park Hotel is up for sale and could change hands at a new record price, according to Crain's New York Business.
Owned by real estate investors Aby Rosen and Michael Fuchs—the 186-rooom property reportedly could be valued at $260 million or more, which would translate to at least $1.4 million per room. The record price came in 2012, when the Plaza New York sold for $2 million a room, Crain's reports.
The pair also is said to be considering other options, including a refinancing of the hotel or the sale of a partial interest. The owners—who developed the 186-room property with famed boutique mastermind Ian Schrager—have retained Eastdil Secured to market the asset. The brokerage firm did not respond to GlobeSt.com's request for comment by press time.
“Downtown hotels usually trade at a discount, but the city is changing,” says Mark Gordon, a hotel developer with the firm Tribeca Associates. “Now downtown hotels are getting commensurate rates with the finest hotels in midtown, and the sale of the Gramercy Park Hotel could be a recognition of that and a new milestone.”
Rosen, Fuchs and Schrager purchased the property, at 2 Lexington Ave., in 2003 and invested more than $200 million in a gut-renovation prior to a reopening in 2006. The hotel soon became seen as one of the city's hippest such properties until the recession did its damage. As a result, the property slipped into default on its mortgage.
Rising from the ashes, Rosen and Fuchs ultimately bought out Schrager's interest in the hotel and restructured its debt. The property, which provides guests with access to Gramercy Parkm has turned thanks to the rebounding of the economy and the cit's record shattering tourism numbers.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
