The Standard Hotel, located along the High Line in the heart of the Meatpacking District, has officially sold for $323 million.
According to city records, private equity fund Gaw Capital, under the LLC “GC SHL,” purchased 848 Washington Street from AB Green Gansevoort, LLC on October 27.
Forbes first reported back in August that Gaw Capital was planning to purchase the hotel at a steep discount from the $400 million paid in 2014 by hotelier Andre Balazs and his company Standard International. Balazs sold off 80 percent of his stake in the hotel in 2013 to a group of investors.
The sale comes at a time when the hotel industry in New York City is still in a slump, after a glut of supply over the last year and a half has caused average daily rates to drop. However, according to a Manhattan lodging index Q2 report from PricewaterhouseCoopers, the greatest impacts from that excess of supply may have finally peaked.
In the second quarter of 2017, occupancy increased 1.1 percent, and year-to-date, a 3.1 percent increase in supply was offset by a 3.8 percent increase in demand, resulting in a slight increase in occupancy of 0.7 percent for the first half of 2017. Meanwhile, average daily room rates were down 1.5 percent for the quarter and 2 percent year-to-date.