Home Hotel industry FiDi Holiday Inn seeks $187m, four years after failed sale

FiDi Holiday Inn seeks $187m, four years after failed sale


99 Washington Street in Manhattan New York (TripAdvisor)

The Financial District Holiday Inn may be the tallest in the world, but that accolade wasn’t enough to keep it afloat amid a failed sale and foreclosure.

The 50-story hotel at 99 Washington Street is up for sale, along with the 8,500-square-foot St. George’s Tavern next door, Crain’s reported. Chinese developer Jubao Xie, who previously tried to sell the hotel in 2017, is seeking $187 million for the sale of the two properties.

Eric Anton of Marcus & Millichap markets the sale.

Xie might find it difficult to sell the hotel, as he faces foreclosure. Three property-related loans have been past due since August 2020, according to Trepp data. Crain’s reported that the building was over 90 days past due with $87 million in debt as of December 2020, making it one of the most distressed hotels in the city.

In September 2018, Xie refinanced the property with a $137 million mortgage. Ladder Capital provided the 10-year fixed-rate, non-recourse, interest-only loan to the 492-key hotel. Before that, Xie bought the hotel with an asking price of over $300 million.

Xie developed the hotel with Sam Chang before taking control of the property in 2014. According to Crain’s, the IHG-operated hotel had a 90% occupancy rate when it refinanced in 2018.

There is no shortage of debt-ridden Holiday Inn properties on the market in New York. Last week, Crain’s reported that Watermark Capital was considering selling the 226-key hotel at 125 West 26th Street in Chelsea. It’s unclear how much Watermark is seeking, but the investment firm bought the hotel from Magna Hospitality for $113 million in 2013.

Amid the hospitality industry‘s writing on the wall, Chan has been on a sales spree in recent months. His McSam Hotel Group in October sold 350 West 39th Street in the Garment District or $166 million, while 100 Greenwich Street was sold to Concord Hospitality for $69 million.

The deals followed further sales by the prolific hotel developer, who has signaled his intention to retire, to continue to be involved in the deals.

[Crain’s] — HoldenWalter Warner