Morgan Stanley Lends $44M to Back Chelsea Hotel Refi
By Matt Grossman December 13, 2018 4:46 pm
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Fortuna Realty has reeled in a $44 million mortgage to refinance its stake in Chelsea’s Hotel Hayden, according to documents that appeared in city property records today.
The loan, from Morgan Stanley (MS), closed last month, the documents show. It serves to refresh and upsize a $36 million financing from M&T Bank (MTB) that last funded the property in September 2017.
The 122-room property includes a fitness center, a restaurant and two penthouse suites in an 18-story building at 127 West 28th Street, between Seventh Avenue and Avenue of the Americas. The hotel also has a small meeting and event space. Fortuna bought the building in 1999 for an undisclosed sum, according to its website.
Guest rooms for a one-night stay this weekend were available for $260 per night from the hotel’s online portal—or $275 with breakfast included.
Aside from the Hayden, Fortuna also controls Hotel Hugo in Soho, as well as lodgings in Garden City on Long Island, in Beverly Hills and in the U.S. Virgin Islands.
Closer to the neighborhood, Fortuna operates Hotel Henri, blocks away from Hotel Hayden at 37 West 24th Street. Not every neighborhood establishment has enjoyed smooth sailing, however. The nearby Flatiron Hotel, on West 26th Street, has been ensnared in dramatic bankruptcy filings. And on East 17th Street, Host Hotels & Resorts sold the building that had houses the W New York Union Square in September for $166 million, after having paid $185 million for the building in 2010.
Fortuna is also developing a new 128-room property at 120-122 Water Street for which it has received a $40 million loan from Bank of America (BAC), Commercial Observer reported earlier this week.
Fortuna did not immediately respond to inquiries. A Morgan Stanley spokesman declined to comment.
