Discounted Sale of Boutique Hotel 4* in New York, Midtown Manhattan, with 60+ Rooms
Property type: boutique hotel
Hotel category: 4*
Room capacity: 60+
Location: Midtown Manhattan, New York, USA
• the hotel is conveniently located close to the city's main attractions
• excellent transport accessibility - just 20 minutes’ drive of the international airport
Options of hotel acquisition:
1. Current Hotel operator is ready to sign long-term lease agreement with the new owner:
• with the possibility of a renewal option
• with indexation of yield linked to inflation
• with a bank guarantee
2. The hotel can also be purchased with Vacant Possession (i.e. Free of Management).
Discounted Purchase price: 50,000,000 USD (negotiable)
(+ closing costs)
Note: Asking price before the COVID-19 pandemic was 90,000,000 USD
Bank financing: 60%
Interest rate: from 3.9%
Amount of investor’s own capital required: 22,050,000 USD
Income (by year 3): 2,500,000 USD per annum
(+ indexation linked to inflation)
Cap Rate (by year 3): 5.0%
Return on investment (ROI): 5.8%
If using bank finance
Amenities and other defining features:
• spacious guest rooms with personal bathroom, satellite TV, desk
• restaurant
• bar
• library
• conference rooms
• garden
• terrace
• free Wi-Fi
• 24-hour front desk
• luggage storage
