The Times Square hotel is being sold.
MCR Hotels is buying the Sheraton Times Square for $356 million. The hotel was purchased for $738 million in 2006 but is being sold for less than half that. Host has been trying to sell the hotel for several years now and was trying to sell the hotel for up to $550 million.
This will be the city's biggest hotel deal since the start of the Pandemic. The number of rooms at the hotel is third largest in the city. It is located on 7th Avenue.
The hotel will continue to be branded as a Sheraton once this transition is complete. The hotel will only have a franchise agreement with Marriott, not being managed by Marriott. MCR Hotels will be directly hiring staff, and will be responsible for more operational decisions.
It's probably not great news. The TWA Hotel JFK is one of the 125+ hotels owned by MCR Hotels.
Several months ago, I wrote about how the CEO of M wanted hotels to stop giving away things for free and to get more inspiration from ultra low cost airlines.
The hotel has been sold for $356 million. The 2006 purchase price of $738 million is a loss of more than $380 million. The hotel will be operated under a franchise agreement model. I wouldn't consider that to be great news since MCR Hotels wants to be the Spirit Airlines of hotel owners.
What do you think about the sale?
There is a tip to Points, Miles, and Martinis.
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