NEW YORK- HOTEL BUSINESS has learned that Rihga International reportedly is negotiating to sell its Rihga Royal hotel, located at 151 West 54th Street in New York City.
Trade sources said the buyer could be Carlson Hotels Worldwide, although that has not been confirmed. Last night, a representative of Carlson told HOTEL BUSINESS, “There is nothing finalized for a project in New York, and we do not comment on developments until theyre to final stages and things are all approved.” Eric Danziger, president/COO of Carlson, was traveling and could not be reached.
On the other hand, The New York Times this morning is reporting that the buyer of the 54-story tower will be Strategic Hotel Capital, and that the price will be approximately $220 million. It further quoted Laurence Geller, president of Strategic Hotel Capital as saying, “I would love to be the owner. But nothings been done. There are still loads of people looking at it.”
An industry souce, speaking on the condition of anonymity, said, “Its Strategics to lose.” The source also said that the actual price is “a tiny bit higher” than that reported in the Times, and that anyone evaluating the price must consider tha fact that the Rihga is not owned in fee simple, but rather, is on a long-term land lease. Land leases in New York City are subject to certain restrictions, among them, restrictions on condominium use, including corporate condominiums.
When reached in his office, Rihga International President Shuichi Shimazu declined comment, citing Rihgas status as a public company. He did say, however, “Any hotel is for sale at any time. With the Japanese economy in so desperate a situation, anything is possible.” (9/28/00) – Jay Nussbaum