Regal scoops up UN Plaza.The city made out like a bandit bandit: see brigandage. on the sale of the UN Plaza Hotel The Plaza Hotel in New York City is a landmark 19-story luxury hotel with a height of 250 feet (76 m) and length of 400 feet that (122 m) occupies the west side of Grand Army Plaza, from which it derives its name, and extends along Central Park South in Manhattan. , which is fetching $102 million from Regal Hotels International Regal Hotels International (RHI) is the largest hotel group in Hong Kong. Regal Hotels International Holdings Limited is a company incorporated in Bermuda and listed on the Hong Kong Stock Exchange. in a deal announced by Mayor Rudolph Giuliani last week.
The $238.31 price per key for each of the 428 rooms is much more than the city hoped for when it was first placed on the market a three years ago.
At that time, it was listed as a line item in the city's budget at $70 million, and mayoral spokesperson estimated at that time it would garner $40 million to $85 million.
A deal with other hotel chains was complicated then by the complex ownership structure over two buildings, one of which is on a long-term ground lease. It took some time for the lawyers to properly word the partition of the buildings into condos and get the correct language in the documents.
Since then, the City's hotel tax has been eliminated, the City's climate has change from depression to jubilation and the tourist trade has fueled occupancy into the low 80 percent range for the first time in a decade.
The city's average daily room rates or ADR ADR - Astra Digital Radio was $173.61, compared to $159.11 last year, which is a 9 percent increase, said, John A. Fox, a hotel consultant with PKF PKF Peace Keeping Force
PKF Pannell Kerr Foster (accounting firm)
PKF Park Falls, Wisconsin (Airport Code) Consulting.
For the three months ending March 30th, the occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time
pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) for the city was 76.8 percent, compared to 72.8 percent last year. The 1996 occupancy rate was 81.8 percent for the full year and he expects the city's hotels will exceed that this year.
The UN Plaza Hotel takes up portions of two green glass towers, one of which is on a long-term ground lease, which complicated the transaction. The buildings overlook the United Nations and East River and there are spectacular city views.
"It's a good hotel and it runs decent occupancy and rates," said Fox. "It is well situated for the UN and is out of the hustle and bustle of Midtown, while being adjacent to the FDR, which makes it easier to get to and from Wall Street. It's certainly a prestigious property and is in good shape."
Regal, he said, is a reputable company that has been seeking a New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of presence for a long time. "They are strong operators and savvy investors," said Fox.
Y.S. Lo, a major international Hong Kong-based real estate investor A real estate investor is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. , owns the chain, which consists of four hotels in Hong Kong. In the United States they are headquartered in Engelwood, Colorado and own hotels in Toronto, Scotsdale, Chicago, Anchorage, Minneapolis, St. Louis, Cincinnati, and Nashville. Hotels Biltmore Los Angeles and the Regal Bostonian in Boston are recent acquisitions.
The city was represented by JP Morgan and they interfaced with the city's Economic Development Corporation.