Editor's Note: Some linked articles may be behind subscription paywalls.

MCR has acquired the 1,780-room Sheraton New York Times Square for $356 million from Host Hotels & Resorts, the Real Deal reports, citing data from Green Street. The property last sold in 2006 for $738 million.

Host tried to sell the hotel in 2018 through Eastdill Secured for $550 million, but the real estate investment trust later stated the fair market value of the hotel dropped to $495 million, the article states.

MCR has been an active buyer over the past two years. It acquired the Royalton Hotel for $40.8 million in 2020 and was part of the joint venture that bought the Lexington Hotel in 2021 for $185 million.

Through a partnership, Deutsche Finance International and CELLS Group have acquired the Sheraton Berlin Grand Hotel Esplanade for 116 million euros [$127.5 million] from Archer Hotel Capital and Event Hotels, according to a news release.

The 394-key hotel is near Großer Tiergarten in Berlin-Mitte, close to the Embassy Quarter and opposite the Bauhaus Archive, the release states. The area includes several large international and domestic companies, political institutions, restaurants, bars and other amenities.

“We believe that this transaction presents us with a strong opportunity to invest in repositioning the property to unlock embedded value by creating a first-class mixed-use destination that incorporates offices, restaurants and bars alongside an upgraded hotel,” said Daniel Filser, head of German investments at DFI. "As with all our regeneration projects, we will place a major emphasis on achieving strong sustainability credentials, including environmental and place-making benefits.”

While western hotel firms have condemned Russia’s invasion of Ukraine, they are also maintaining their franchisee relationships in Russia, reports HNN’s Terence Baker. Some, though, are taking action to voice their opposition to the war.

A spokesperson for France’s Accor stated the company will continue to operate in Russia to support employees, the local communities, non-governmental organizations and international media, but it would suspend all openings and future development in the country.

“In addition, we are suspending any loyalty partnerships with Russian companies,” the spokesperson said. “Then, all management operations, booking, distribution, loyalty and procurement services to hotels for which owners are included in any international list of sanctions are suspended. They will not be distributed anymore on Accor’s distribution platforms.”

The Highland Group’s January 2022 report on extended-stay hotel performance found this hotel segment saw average daily rate grow 25.3% year over year. Even with higher rates, occupancy in extended-stay hotels also grew, holding on to its 19-percentage point premium over the overall industry. The combination of rate and occupancy growth has resulted in revenue per available room growing by 37.3% compared to last year.

“Recent demand growth four times higher than supply and lower priced segments already recovering RevPar back to 2019 indicates a strong near-term outlook for extended-stay hotels,” Mark Skinner, partner at The Highland Group, said in an email about the report.

Despite recent increases in wage growth, the rising cost of living is making it more difficult for Americans, forcing them to stretch their paychecks further, CNBC reports. Citing data from a LendingClub.com survey, the news outlet reports 64% of the U.S. population was living paycheck to paycheck at the beginning of the year.

Those earning higher incomes aren’t escaping unscathed either, especially those where the cost of living is more expensive. Forty-eight percent of those who earn six figures said they are living paycheck to paycheck as well.

“You’ve got to eat, you’ve got to commute; these are not discretionary expenses,” said Anuj Nayar, LendingClub’s financial health officer.

Return to the Hotel News Now homepage.