Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
PPHE Hotel Group has agreed to sell its development site in New York to a US real estate developer for $33.5m (£24.7m).
The international hospitality firm, which develops and operates hotels and resorts, confirmed its wholly-owned subsidiary entered the agreement to dispose of the Manhattan freehold.
This New York City site was acquired in 2019 with plans to develop the group’s first hotel in the US. However, following the move the group said the regulatory landscape for ground-up hotel developments in New York “significantly altered”, leading it to “conclude that a hotel development is not viable for this site”.
It added it has optimised the site to “maximise its exit value” through demolition works and the acquisition of air rights.
The sale is expected to close in the coming months, with proceeds used to repay $8.3m (£6.1m) of associated debt.
Greg Hegarty, co-CEO of PPHE, said: “We are pleased to exit this longstanding development site near Hudson Yards in New York, which demonstrates the group’s focus on and the proactive pursuit of its strategy. The site was acquired in 2019 with the intention of developing a hotel and condominiums.
“However, with the significant changes to the regulatory landscape following acquisition, we believe this disposal presents an opportunity for us to release capital, which can be redeployed into our core geographic regions.”
