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Real Estate Alert: REITs Try Quiet Approach to Sell New York Hotels

According to Real Estate Alert: Hotel REITs seeking to reduce their holdings in Manhattan are increasingly reaching out to select investors rather than running broad marketing campaigns.

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Meanwhile, a general cooling in the hotel sector has many REITs looking to sell valuable properties to pay down debt or buy back stock that's trading at a discount, said Lukas Hartwich, a senior analyst at Green Street Advisors. "There are a lot of assets on the market, and I expect more trades to happen as the year goes on," Hartwich said.

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Most owners are seeking a foreign buyer with a long-term investment strategy who will look past any short-term softening in fundamentals. "They will pay up for these hotels even if the numbers aren't so pretty over the next few years," said Hartwich of Green Street. "It's a top tourist city and, yes, there are some issues in the short run, but foreign buyers can feel confident that New York will be relevant in the long run."

To view the full article from Real Estate Alert, click here.