Forward of the tenth anniversary of the Arlo Motels model’s launch, London-based Quadrum World is exploring a possible sale of the enterprise.
Quadrum tapped Moelis & Co. and Eastdil Secured to hunt consumers for the model and its underlying actual property, Bloomberg reported. There’s no assure the search course of will lead to a sale of the boutique lodging model.
Moelis and Eastdil declined to remark to the publication, whereas Quadrum didn’t reply to the publication’s request.
Quadrum started the micro-hotel model in 2016 after a collaboration with John Pritzker fell aside. The model’s portfolio of seven motels — designed for city vacationers — contains 4 places in New York Metropolis (one in every of which is in Brooklyn), in addition to one apiece in Chicago, Miami and Washington, D.C.
The model leveled up at first of 2023, when Quadrum acquired the bankrupt 147-key Williamsburg Resort at 96 Wythe Avenue in Brooklyn for $96 million. The acquisition got here months after builders Toby Moskovits and Michael Lichtenstein were stripped of control of the lodge by a federal chapter decide.
Pod Resort and Yotel had been among the many high gamers within the sector on the time of launch, at the very least in Manhattan. Opponents immediately embrace Marriott Worldwide’s citizenM model and Generator Hostels.
There’s been important current investor exercise in New York Metropolis’s lodge market, resulting in loads of wheeling and dealing of properties. This week, Andrew Farkas’ Island Capital and its three way partnership companions, Three Wall Capital and MCR, listed the 725-key Lexington Resort in Midtown East, eyeing a price of roughly $275 million; Eastdil can be concerned in that sale.
The typical occupancy fee in New York Metropolis exceeded 84 % per week final yr, up from a pandemic low of about 50 %, in line with a report by Lodging Analytics Analysis & Consulting. Bills tied to labor prices, excessive rates of interest and property taxes, nonetheless, proceed to have an effect on the business’s backside line.
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Quadrum launches micro-hotel brand Arlo
UK firm to buy Mostkovits, Lichtenstein’s bankrupt Williamsburg Hotel for $96M
Andrew Farkas eyes $275M for Lexington Hotel
