Summertime, and the Hotel Trading’s Brisk

Host Hotels & Resorts, the largest U.S. lodging REIT, has been an active purchaser of Manhattan hotels, including some of the city’s largest and most prominent: the New York Marriott Downtown, New York Marriott Marquis, Sheraton New York Hotel & Towers, W New York on Lexington Avenue and W New York Union Square. In March, Host purchased the 775-room New York Helmsley Hotel on East 42nd Street off Third Avenue for $313.5 million, or $404,516 a key.

In 1981, Harry Helmsley opened the 55-story Helmsley Palace hotel built adjacent to the landmark Villard Mansion at the corner of 50th Street and Madison Avenue, directly across from St. Patrick’s Cathedral and Madison Avenue. Earlier this month the 889-room hotel, currently owned by an entity associated with the royal family of Brunei, entered into a contract to be sold to investment management firm Northwood Investors, started by former Blackstone Group executive John Kukral, for approximately $400 million, or $445,000 per key. Industry leaders believe the property would have fetched well over a half-million per key if it were not under a long-term land leasehold agreement with the Catholic Archdiocese of New York, which owns the land under the hotel.

MEANWHILE, AS HOTELS in Manhattan continue to be sold in the price range of $450,000 per key, properties in Atlantic City are being sold at bargain-basement prices.

This month, Houston-based Landry’s Inc, a gaming and restaurant conglomerate, took over the 740-room Trump Marina hotel paying a mere $38 million, or $51,351 per key. The new owners, who own the Golden Nugget casinos in Nevada, announced that they are prepared to pump up to $150 million into the casino to revive and renovate the property.

Last fall, the 940-room Resorts Atlantic City Hotel, the town’s oldest casino, was sold to Dennis Gomes and real estate investor Morris Bailey, paying $35 million, or just $37,234 room per key.