Ritz-Carlton New York Central Park Hits the Market in a Potential $400M Sale

Luxury Hotel Enters Bidding Arena

The iconic Ritz-Carlton New York Central Park has been listed for sale, and industry insiders anticipate bids to hover around an estimated valuation of $400 million. If the valuation of approximately $1.6 million per room is realized, this transaction could emerge as the most lucrative hotel deal on a per-room basis in Manhattan since 2018.

Marketing Mandate Awarded to Newmark

Newmark has been entrusted with the marketing responsibilities for the property, acting on behalf of the joint venture owners—Westbrook Partners and Korea Investment Corp., as revealed in a Green Street alert. The offering encompasses the condominium interest in the 253-room hotel, spanning the lower 22 floors of a 33-story building situated at 50 Central Park South.

Potential for Residential Conversion

The listing strategically targets both traditional hotel investors and redevelopers. Prospective buyers have the opportunity to explore the conversion of approximately 140,000 square feet across 12 floors into residential condos, according to insights from Green Street.

Luxury Features and Financial Performance

Positioned as one of the select few hotels facing Central Park, the Ritz-Carlton boasts opulent accommodations, including 50 suites with an average size of 1,000 square feet. The hotel, subject to a long-term management contract with Ritz-Carlton, a subsidiary of Marriott International, posted impressive revenue figures in the previous year. Generating around $900 per room, the Ritz-Carlton maintained an occupancy rate of approximately 75%. With an average room rate of $1,200, the property stands out against the backdrop of the Midtown West submarket, where luxury hotels averaged rates of about $565, according to CoStar data.

Manhattan Hotel Market Insights

In recent years, Manhattan witnessed a resurgence in its hotel sector, marked by notable deals. Despite a 36% national decline in trading activity, New York hotels valued at least $25 million experienced a remarkable 122% increase in sales, reaching nearly $3.6 billion in 2023. The Ritz-Carlton, originally the St. Moritz hotel opened in 1930, underwent rebranding in 1999 under Millennium Partners and gained majority ownership by Westbrook in a 2012 deal valued at $218 million. The anticipated sale is poised to make waves in the competitive Manhattan hotel real estate landscape.