New York Edition Hotel Hits The Market For $271M

The Abu Dhabi Investment Authority is looking to sell its New York Edition Hotel at 5 Madison Avenue.

The 271-key hotel in landmarked the clock tower overlooking Madison Square Park is being marketed by Eastdil Secured for about $271 million, sources told The Real Deal. The offering was initially flagged by Green Street and tweeted by reporter Lois Weiss.

The sovereign wealth fund bought the hotel from Marriott International for $337 million in 2015 as part of its $815 million purchase of three Edition hotels. The lower asking price today reflects difficulties in the hospitality sector. Higher interest rates and cost of capital have lowered valuations of many hotels.

Marriott International acquired the Flatiron District clock tower for $165 million in 2011.

Marriott and hotelier Ian Schrager launched the Edition brand in 2008. Edition Hotels are luxury boutique hotels that cater to an “underserved market of affluent, culturally savvy, and service-savvy guests,” according to Marriott’s website.

The Abu Dhabi Investment Authority owns Edition Hotels in New York and London and bought one in Iceland last year, according to the Iceland Monitor.