McSam Sells Former Radisson Hotel – Hotel Investment Update

The former Radisson hotel in New York City’s financial district has a new owner! Slate Property Group, a multifamily developer based in New York City, purchased the 289-room property from McSam Hotel Group for $94.5 million. That breaks down to about $328,720 per key, which is a pretty hefty price tag.

Interestingly, during the height of the pandemic, this 20-story building was being used as a homeless shelter. It even made headlines when it was revealed that the property was housing migrants seeking asylum. Quite the controversial turn of events for a hotel turned shelter.

This sale is part of a larger trend for McSam Hotel Group. Earlier this year, Sam Chang, the man behind McSam, started selling off his hotel properties. In total, he’s unloaded over $200 million worth of properties in Midtown Manhattan in late 2023. And let’s not forget about the $160 million deal he struck with Magna Hospitality Group.

In fact, just in April of this year, McSam sold a brand-new 142-key hotel in Queens for a cool $40 million to an LLC connected to Letap Group. And they’ve been on a roll ever since, including a recent sale of the Holiday Inn Express New York City in Chelsea for $59.8 million to Prospect Ridge, a private equity firm based in the Big Apple.

It seems like McSam Hotel Group is really shaking things up in the hospitality world with all these sales. And now, with the former Radisson off their hands, it’ll be interesting to see what comes next for both McSam and Slate Property Group. Stay tuned for more updates on this ongoing saga!