Despite Worries Of Oversupply, Lightstone Pushing Ahead With 300-Key Moxy Hotel In East Village
The Lightstone Group plans to build a new, 300-key, Moxy-branded hotel at one of its properties in the East Village.
The project will be built at a lot that runs from 112 to 120 East 11th St, between Third and Fourth avenues, The Real Deal reports. The building is expected to be about 85k SF and will be operated by Marriott International’s Moxy Hotels brand, which targets Millennials with cheaper rates and a hip atmosphere.
Lightstone acquired the lot as part of a $127M, six-building multifamily portfolio purchased from Pan Am Equities in April. The developer has hired Meridian Capital Group to resell one of the buildings in that portfolio, 85 East 10th St, which represented about $75M worth of the overall sale.
Lightstone said last year it expected to spend roughly $1B to build four Moxy hotels in Manhattan, one in Brooklyn and one in Los Angeles, and another $1B on Moxy hotels throughout the rest of the country. The developer is working on two other Moxy projects in Manhattan: a 343-key hotel at 105 West 28th St in Chelsea and a 618-key hotel at 485 Seventh Ave, south of Times Square.
Despite growing skepticism from lenders on hotel projects amid fears of a supply glut, developers and hotel operators have maintained a rosy outlook on the asset class. [TRD]