Hong Kong investor Gaw in pole position to buy The Standard

Goodwin Gaw is in advanced talks over the $340 million sale of the Standard Hotel in Manhattan’s Meatpacking District.

US reports say that a fund controlled by Gaw Capital Partners is in pole position to buy the property.

Gaw Capital owns properties valued at US$8 billion around the globe. Its American affiliate, Gaw Capital Partners USA, has more than $2.7 billion in assets under management - including Los Angeles' Hollywood Roosevelt Hotel. One of Gaw's investment funds recently bought the Marriott City Center in Oakland, Calif.

The reported purchase price for The Standard is some $60 million lower than an agreed sale price for a deal which fell through in 2014. Industry analysts say the property's REVPAR, occupancy rate, and F&B revenue are "down significantly" since early 2014 due to greater competition from new supply and Airbnb.

Cushman & Wakefield hotel sale specialist Tom McConnell said that a price drop from $400 million to $340 million would be "similar to the diminution in values that we've seen around the city".

"The Standard is like a big restaurant complex with venues at the top and on the bottom, with hotel rooms sandwiched in between. I'd venture to say that it does more food and beverage income as a percentage of revenue than any other hotel in town," McConnell said.

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