One of Soho’s most popular boutique hotels is going up for sale.
Adelaide Polsinelli, a vice chairman at Compass, has been tapped to market the 14-room The Broome, a one-time artists’ loft transformed by sibling French restaurateurs Jean Claude and Stephane Iacovelli into one of the neighborhood’s favorite haunts.
“The Broome Hotel is an iconic location with tremendous possibilities,” said Polsinelli. “It is flanked by some of the most exciting, landmark buildings in the city and presents an unprecedented opportunity for a visionary investor to reimagine the property for tomorrow’s world.”
The Iacovelli brothers and their partners Vincent Biotier and Damien Jacquinet spent six years and $6 million transforming a rundown building at 431 Broome Street into the hotel dubbed an “urban oasis” and celebrated by both mainstream and travel press as an idyllic city retreat.
Architects James Anzalone and Thomas Tsue redesigned the existing 1825 building and connected it to a newly constructed building on an adjacent lot to the rear to create a “secret” open-air courtyard with a ground floor café, special events space and 14 rooms furnished with the work of local artists and craftspeople.
The hotel’s conference room opens out onto the interior patio and there are approved plans to build a spa with an indoor swimming pool in the sub-basement.
Since the start of the coronavirus pandemic, the hoteliers have been working within city guidelines to continue to offer services and are currently running at over 50 percent occupancy, according to Polsinelli.
However, with the ongoing pandemic decimating New York’s hospitality sector and no short-term relief in sight, Polsinelli said the Frenchmen had made the difficult decision to sell.
“With over 60,000 hotel rooms currently closed in New York City, widespread cancellation of group travel and heightened economic uncertainty, the sellers believe the hotel can be reborn with the right investor leading the charge to meet the demands of a post-COVID world,” said Polsinelli.
“The Broome Hotel can easily be transformed into a wellness retreat, bespoke headquarters or corporate housing. The ultimate purchaser will have a rare opportunity to continue the legacy of exceptional creative concepts SoHo is celebrated for.”
The offering comes over six months into the COVID-19 pandemic as Manhattan’s lodging sector continues to experience record closures. As of early September, approximately 61,450 hotel rooms (representing 58 percent of total inventory) in Manhattan were closed, according to a report from PricewaterhouseCoopers.
“You won’t see meaningful increases in operating metrics for Manhattan hotels until we see a return of the business traveler, and that likely comes after a widely distributable vaccine and therapeutics become available,” said Warren Marr, managing director, PwC.
According to RCA, only one hotel transaction closed in Manhattan during the second quarter. In June, GFI Capital Resources purchased a 61 percent interest in the James Hotel at 88 Madison Avenue for $110 million. The sale implies an overall value of $180 million for the 337-key property, or $535,097 per key.