Cindat USA is selling a preferred equity stake in a portfolio of 7 select service hotels it purchased back in 2016 at a highly discounted rate. The hotels include several Holiday Inns, Hampton Inns, and Candlewood Suites in New York. The hotel industry was severely disrupted as a result of the pandemic earlier this year, as much foreign travel was banned and US residents were fearful of leaving their homes. Although hotel occupancy rates have begun to increase recently, they continue to be far below the rate of last year.
The low occupancy rates of hotels doesn’t have to paint a picture of despair. There is always room for innovation and transformation, two principles in which New York thrives on. The low occupancy rates can spur other uses for the space. More socially distant office space, and increased pied-a-terres may become the new norm, taking advantage of the unused hotel space. Now is the time to think creatively.
Contact GE Grace if you are interested in seeing space, and let an experienced team of brokers guide you in this ever changing market.