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The Washington Hotel: Eight Albany Financial District Nyc

The Washington Hotel, located in New York City's Financial District, is a luxury hotel with 217 guestrooms and over 11,000 square feet of retail space, now available for purchase unencumbered by management or affiliation. The property offers significant investment highlights, including a $50M Liberty Bond Enhancement and the potential for rebranding and repositioning in a prime market. Despite the challenges posed by the COVID-19 pandemic, the hotel presents a unique opportunity for new ownership to capitalize on its location and amenities in a recovering tourism sector.

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21 views12 pages

The Washington Hotel: Eight Albany Financial District Nyc

The Washington Hotel, located in New York City's Financial District, is a luxury hotel with 217 guestrooms and over 11,000 square feet of retail space, now available for purchase unencumbered by management or affiliation. The property offers significant investment highlights, including a $50M Liberty Bond Enhancement and the potential for rebranding and repositioning in a prime market. Despite the challenges posed by the COVID-19 pandemic, the hotel presents a unique opportunity for new ownership to capitalize on its location and amenities in a recovering tourism sector.

Uploaded by

brunexeder
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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THE WASHINGTON HOTEL

EIGHT ALBANY
FINANCIAL DISTRICT NYC
THE WASHINGTON HOTEL

EIGHT ALBANY
FINANCIAL DISTRICT NYC
THE OFFER

KSR has been exclusively engaged to


solicit offers to purchase the fee simple
interest in the Washington Hotel, a luxury
hotel located in the center of the Financial
District in Lower Manhattan by Battery
Park, featuring 217 guestrooms including
11,000+ square feet of prime retail.
The Hotel may be acquired unencumbered
by both management and affiliation,
presenting as an exceedingly rare
opportunity for a new owner to pursue a
management and affiliation strategy of its
own choice. The hotel guest rooms, including
event banquette, lobby bar and lounge
areas which are all union while the retail/
restaurant space is non-union.

The opportunity exists in one of the strongest


performing commercial real estate markets
in the world. The Hotel is defined by a spirit
of independence and individuality, offering
a unique and distinctive luxury experience at
this prime location. Ample meeting spaces
and a uniquely distinctive location make The
Washington Hotel ideal for both business
and leisure travel rmarkets. The Washington
Hotel at Albany Street is playing an important
role in re-establishing the vibrant and diverse
community of Lower Manhattan.
THE WASHINGTON HOTEL

EIGHT ALBANY
FINANCIAL DISTRICT NYC

VITAL INVESTMENT HIGHLIGHTS

• $50M Liberty Bond Enhancement that run with the site


and are transferable. A unique value proposition of the
transaction, including the assumable benefits of the
sub 3% Liberty Bonds maturing in October, 2042

• Opportunity to Acquire a Luxury Hotel in the Heart of the


transformed Financial District

• Offered Fully Unencumbered of Both Management


and affiliation

• Prominent Downtown Location with magnificent


Panoramic views

• Fee Simple Real Estate with Unparalleled Optionality

• Leased Food and Beverage Operations

• Irreplaceable Live/Work/Play Location at the Crossroads


of Lower and Midtown

• Located in One of the Premier upscale luxury Hotel,


Residential and Retail Markets in the World

• Significant ROI Opportunities


LUXURY HOTEL WITH PANORAMIC
VIEWS OF LOWER MANHATTAN

The Washington Hotel, 8 Albany Street at


the corner of Washington Street is an
architectural gem standing tall in the heart
of Lower Manhattan’s Financial District, offers
unparalleled panoramic views of the bustling
urban landscape. Erected in 2010, The Hotel
area comprises a portion of the basement
and ground floor, and floors 2-22 of the
building. The Hotel contains 217 guest
rooms and 11,118 ± square feet of leasable
retail area within 143,281± square feet of
gross building area.

The offering includes rights to the existence


of a lease(s), hotel Lobby bar/restaurant
retail condominium unit, a mezzanine level
for dining, events with plenty outdoor seating
on ground floor for F&B.

UNPARALLELED OPTIONALITY
The Washington Hotel offers investors an
unparalleled opportunity to acquire a fully
unencumbered, fee simple hotel. The
opportunity exists for a new owner to
reposition the asset in order to maximize
true value.
GLOBAL BRANDING AND
MANAGEMENT OPPORTUNITY

The property is offered fully unencumbered


of brand and management. KSR has
canvassed brands who have expressed
interest in various options ranging from
soft brands, lifestyle/boutique brands and
hybrid residential concepts. Major global
franchisers acknowledge the international
desirability and demand of Manhattan, the
intrinsic value of having presence in a central,
high visibility location, and the absolute
barriers to entry/lack of opportunities of
this nature. The Washington Hotel has a
substantial upside and unique opportunity
for a new owner to benefit from enhanced
performance and revenue.

The Hotel has been institutionally maintained


and operated during the last decade and
offers full optionality for a new investor to
rebrand,, reposition, or repurpose the asset.
The hotel can be a blank slate of opportunity
- a jewel box set amongst lower Manhattan’s
vibrant market.
AS OF FALL, 2020, THERE WERE 3,500 FOOMS PERMANENTLY CLOSED AND
ANOTHER 34,300 ROOMS TEMPORARILY CLOSED.

ACCORDING TO THE NEW YORK CITY HOTEL ASSOCIATION, “New York City’s robust visitor numbers
before the COVID-19 pandemic generated strong demand for hotel rooms, reflected by average occupancy
rates that were among the highest of any urban market in the United States. With the pandemic, the hotel
industry throughout the U.S. suffered and the New York City hotel market, experienced an even greater
drop in demand relative to national levels. Several industry analysts project that the New York City tourism
sector and related hotel demand will not recover until 2025. While a return to pre-COVID levels of tourism by
2025 is projected, it is dependent on a variety of factors that make predicting a recovery year challenging.”
The market has seen nearly 40,000 rooms go offline since the COVID pandemic began.

Several industry analysts and independent economic and real estate analyses project that the US hotel
sector will likely recover by 2023; yet, because of its characteristics and specific dependencies, New York
City’s hotel sector will not recover until 2025. It is also assumed that recovery will be slower in the period
2021 – 2023 and will then accelerate before stabilizing to pre-COVID levels in 2025.

THE WASHINGTON HOTEL, located in New York City’s Financial District (FIDI) in lower Manhattan and
originally managed and operated by Marriot under its W brand. The W Hotel’s relationship was terminated
in February of 2020 just prior to the Covid Pandemic’s Hotel Market closure in April 2020; and, the hotel
remained closed until November of 2021. During this period the Hotel was maintained and Owner operated.
As the hotel’s last full fiscal year of operations was 2019; a benchmark last full year of the hotel’s statistics
available prior to the Pandemic closure was reported as: Occupancy: 83.2%, Average Daily Rate (ADR):
$298.57 and Revenue per Room (RevPar): $248.38 New York Hotel, and its Financial District hotels, began
to reopen in 2021.

L I M I T E D S U P P LY – G R OW I N G D E M A N D
As of December 9, 2021, new hotel development, expansion, or enlargement within New York City
requires issuance of a special permit (the “Special Permit”) by the City Planning Commission (“CPC”)

The amendment requires that all new hotel construction incorporates the use of unionized construction
workforces, and the management staff of newly built hotels must adhere to collective bargaining
agreements for hourly workforces in the operational departments (rooms, food and beverage, and
property operations and maintenance). Any aspects of the operation that are leased to external
operators, including a food and beverage outlet, are exempt from this requirement Developers forecast
that restrictions on hotel development would have a chilling effect. Conditions, so far, are pretty icy.
Since the city required special permits to build a hotel, not a single application for one has been filed.
While building permits have been sought and issued for new hotels, they appear to be for projects
exempt from the law or grandfathered under the old rules.
UNDER-UTILIZED SPACE
There are approximately 6,500+ SF of un utilized
space in the hotel for the new owner to capitalize
on and increase revenue and perfomance, such
as meeting rooms, F&B / banquette area, an
abundance of storage area, several back of house
offices are empty, including state of the art
chic mens and women’s restrooms fit for large
functions and banquettes. All Finishes are
attractive and in good condition.

AMENITIES
The hotel boasts an array of amenities meticulously
crafted to enhance the overall guest experience,
ensuring every aspect of their stay is exceptional.
Among these offerings are a sophisticated
business center and a cutting-edge fitness facility.

The Business Center: The hotel’s business center


provides a conducive environment for productivity.
Equipped with modern amenities and spacious
meeting rooms, it serves as a hub for guests needing
to attend to professional matters. Whether
conducting meetings, catching up on emails,
or finalizing presentations, guests can rely on
the hotel’s business center to meet their needs
promptly and efficiently.
FOOD & BEVERAGE
The Washington Hotel brings the energy of Mykonos with Skinos, an upscale fine dining restaurant with
innovative take on traditional Mediterranean, located on the first and second floors, it’s cuisine is a mix of
modern aesthetic with authentic flavors to deliver classic Mediterranean dishes.
FULL OM WITH FINANCIALS CAN BE SENT UPON REQUEST
FOR MORE INFORMATION, PLEASE CONTACT:

Owners Representative

ID: 10401374149

RICKY ARYEH
M: 917.797.9911 | O: 212.417.9217
[email protected]

DAN SHAPIRO
M: 917.519.8981 | O: 646.928.5434
[email protected]

KEVIN NORMAN
M: 718.730.3295 | O: 212.417.9217
[email protected]

1385 Broadway, 22nd Floor


New York, NY 10018
212.417.9217
ksrny.com

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