Wan't to buy the Pump Room? You had your chance.
The owners of the Ambassador East Hotel have taken the property off the market after failing to attract a credible bid for the property (which includes the venerable Pump Room restaurant) at a price above $60 million, or almost 20% lower than the asking price of $71 million. Instead, look for a renovation and a short-term refinancing at a 75% LTV.
Maybe this deal is a casualty of CMBS spreads, as the article indicates. Or maybe it is a location issue, as more hotels come in at different parts of downtown. Or maybe the hotel just needs a sprucing up to attract first-flight buyers. My take is that it is a timing issue that will be resolved as the market settles. It will be interesting to see how this whole scenario plays out at the end. I like this old grand dame hotel, and I think it will turn out well in the end.
Maybe this deal is a casualty of CMBS spreads, as the article indicates. Or maybe it is a location issue, as more hotels come in at different parts of downtown. Or maybe the hotel just needs a sprucing up to attract first-flight buyers. My take is that it is a timing issue that will be resolved as the market settles. It will be interesting to see how this whole scenario plays out at the end. I like this old grand dame hotel, and I think it will turn out well in the end.
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