Loews Hotels

Real Estate Weekly, Jan 5, 2000

Loews Hotels, as part of the chain's strategy to build a portfolio of unique upscale hotels, has sold the Howard Johnson Hotel and Days Hotel in New York City to Hampshire Hotels. Sonnenblick-Goldman Company, acting as the exclusive advisor to Loews Hotels, arranged the sale.

The hotels, which are both located on Eighth Avenue in the Theater District of Manhattan, were built by Loews in 1962. The Howard Johnson Hotel contains 300 rooms and is located on Eighth Avenue and 51 Street. The 367-room Days Hotel is located on Eighth Avenue and 49th street. Both hotels are limited service properties and have been undergoing renovations since in 1996.

"Loews Hotels is in the largest expansion in the company's 53-year history, and while these hotels have been a profitable part of our portfolio for several decades, we sold them to keep our focus on the development new four and five star hotels," said Jonathan Tisch, president and CEO, Loews Hotels. In New York, Loews continues to own and operate The Regency Hotel on Park Avenue and 61 st Street and the Loews New York Hotel on 51st and Lexington Avenue.

"This transaction was successful since it furthered key objectives for both Loews and Hampshire. Loews was able to divest of properties that did not fit with their strategy of operating and branding upscale hotels in urban and resort locations," said Arthur Adler, managing director of Sonnenblick-Goldman Company's Lodging and Leisure Group. "Likewise, these properties fit ideally in Hampshire's portfolio, which focuses on Manhattan, where value added operating and marketing initiatives can be implemented."

Over the last few years, Lowes Hotels has invested $200 million in equity with various partners to develop $1 billion worth of hotels.