Shareholders in the Lombardy Hotel co-op at 111 East 56th Street are looking to sell the property for over $150 million, according to The Real Deal. The 192-unit, 244,619-SF building is located just off of Park Avenue, and is being pitched as a potential rental conversion. Other potential uses include an extended-stay hotel or a senior living facility.
Backdrop: The co-op shares are held by investors who sought to capitalize on the city’s booming tourism industry pre-Covid. But with the hospitality business still struggling to recover, owners are growing weary of covering the carrying costs of empty rooms and have banded together to sell all their shares, TRD noted.
History: The 22-story, Plaza District hotel was built in 1927 and purchased two years later for $4 million by William Randolph Hearst may, who was one of the largest property owners in the area. The building was converted into a co-op in 1957. Eastdil Secured has the listing.
A tale of two markets: Conventions and in-person conferences have been largely sidelined since the onset of the pandemic due to health concerns. While the rollout of vaccines early this year provides hope that many conferences and trade shows will return before the end of 2021, hospitality industry experts don’t expect hotels centered around convention halls to return to their pre-pandemic volumes in markets like Las Vegas for at least another three years, CO noted.
Be Smart: Fitch is forecasting that it will take until 2025 for a full recovery for convention hotels. This contrasts with hotels that cater to leisure and travel, which are expected to see a V-shaped recovery after most of the county is inoculated. [TRD+CO]
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