Hospitality: Four Seasons Hotel said to be hitting the block
By Lisa Fickenscher for Crain’s New York
Even multi-billionaires like Ty Warner are not immune to the latest economic conditions. Mr. Warner, who made his fortune manufacturing Beanie Babies, owns the Four Seasons Hotel New York—but maybe not for much longer.
He is in negotiations to sell the posh property to a group of investors, according to several news reports.
The 368-room hotel, where room rates start at around $1,000, has been hit hard by the downturn in business and international travel to the city. Like all luxury hotels, its occupancy rate has been well below the city average of about 80%.
But more importantly, Mr. Warner has fallen behind on his debt payments. He was unable to make a payment on Jan. 9, according to sources familiar with the situation.
According to Real Estate Alert, the property has $185.6 million in mortgage debt. But the property is tied to a larger debt package that includes three other hotels, and the Four Seasons New York being used as collateral for the larger loan, according to the trade publication’s Web site.
Hotel experts are surprised that Mr. Warner would try to sell the midtown jewel in this depressed real estate market. Given Mr. Warner’s vast wealth, “You’d think he could ride through this downturn,” said Sean Hennessy, chief executive of Lodging Investment Advisors.
Even so, they say the mogul would rather sell the property than bring in other investors. “I think he has a relatively unique style, so he would probably sell it outright and be done with it or keep it himself and finance it himself,” Mr. Hennessy said.
The company did not return calls for comment.
