Hilton Times Square Sells at Rock-Bottom Price
A 478-room Hilton hotel, in a prime location near the heart of New York City’s Times Square is set to reopen. The property shut down two years ago during the early stages of the pandemic. Now the new owners expect to soon open the doors for guests, after getting a bargain deal for the property.
The investment firm Apollo Global Management Inc. and hospitality investor Newbond Holdings agreed to buy the Hilton Times Square for about $85 million, WSJ reports. The deal is expected to close within months, and the hotel is expected to in the fall.
The rock bottom price is about a third of the $242.5 million price tag Sunstone Hotel Investors paid for Hilton Times Square back in 2006.
The hotel closed its doors because of the pandemic in April 2020 and then submitting paperwork to close permanently in September 2020. Sunstone Hotel Investors didn’t make payments on its $77.2 million mortgage from April to September. The California-based REIT also stopped making rent payments on its ground lease in March. Then, in early 2021, the owner surrendered the 44-story property to Torchlight Investors, the servicer of the mortgage. They agreed to a lease in lieu of foreclosure.
The new owners are now looking to reopen the doors later this year, betting on the current travel rebound. NYC and Co. is projecting a surge in tourism this year, forecasting 56 million visitors to the city, up from 22 million in 2020. New York City hosted almost 67 million visitors in 2019.