Brack Capital Real Estate’s Indigo LES Hits the Market
Hotel Indigo Lower East Side has hit the market with Eastdil Secured, according to newly released marketing materials.
The 294-room hotel at 171 Ludlow Street between East Houston and Stanton Streets is a joint venture between Brack Capital Real Estate and InterContinental Hotels Group. They partially opened the hotel in November 2015, and it was fully operational by the middle of last year, according to the Eastdil property information.
The hotel, one source with intimate knowledge of the property said, would likely go for $600,000 per key, or $176.4 million, because it is the flagship Indigo for IHG. Highlights, he noted, are the higher-end finishes and room designs as well as the unobstructed views from all sides of the building.
Shai Shamir, the chief executive officer of U.S. operations at Brack, said he expects Hotel Indigo LES to sell for north of $600,000 per key.
While he wouldn’t talk specific numbers, hospitality specialist Sean Hennessey, chief executive officer at Lodging Advisors, said that because the hotel hasn’t been open long, its price will be based on expectations rather than historical performance.
Hotel Indigo LES is 280 feet tall and comprised of 26 stories. It is home to Mr. Purple, a 15th-floor restaurant, bar and lounge with two terraces amassing 4,480 square feet of outdoor space, as well as a sky lobby, fitness center, business center and outdoor pool. The retail condominium (home to a virtual reality computer technology shop and a building sales office) and garage at the base would not be part of the sale as they have different ownership.
“It’s a boutique hotel, a lifestyle hotel,” Shamir said. “It’s very unique and really the flagship hotel for Indigo and basically IHG. I think it’s really one of the best Indigos in the world.”
Brack, the owner of two citizenM hotels in New York City (one of which is under construction), and IHG bought the stalled site in 2011, Shamir said, for $45 million. He said they had always had planned to develop the site and sell it. “We are developers,” he noted.
The hotel won’t appeal to everyone, like owner-operators with non-union hotels, because its operations other than food and beverage are unionized.
Mark Schoenholtz of Eastdil Secured, one of the listing brokers, declined to comment.