New hotel to fetch record price as sector heats up

A luxury hotel built in 2008 is about to be sold for at least $1.2 million per room – a record since the financial crisis, reports the Wall Street Journal.

Read: Google Street View is heading into hotels

The Standard Hotel is in downtown New York. Owned by hotelier Andre Balazs, it has a reputation for over the top parties and naughty guests. Currently a shortlist of bidders, including investor Steven Kantor, are vying for the property.

The total sale price is expected to be at least $400 million, reports the Journal.

Building the hotel cost Dune Real Estate Partners and Greenfield Partners about $240 million over 10 years.

The hotel industry experienced the biggest increase in commercial real estate sales last year, with U.S. transactions hitting $22 billion.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.