BD Hotels founder Richard Born has sold Chambers Hotel Central Park South to Toronto-based Hennick & Company for $66.2 million. The 16-story property sits at 13-15 West 56th Street in Midtown Manhattan and has remained shuttered. Property records made the sale public Monday.
Born's BD Hotels acquired the asset in 1998. The sale reflects the ongoing distress in Manhattan's hotel sector, where properties struggle with reduced travel demand and conversion challenges. Hennick & Company, the Canadian investment firm behind the purchase, now owns a prime Midtown asset steps from Central Park.
For hotel developers, this deal signals a shift in ownership among distressed properties. The $66.2 million price indicates the buyer believes it can either reposition the asset as a hotel or convert it to another use, likely residential given market trends. Manhattan's hotel market has pushed owners toward alternative strategies rather than traditional hospitality operations.
Sellers like Born face pressure to liquidate underperforming assets. The Chambers Hotel sale removes a liability from BD Hotels' portfolio at a time when hotel revenues remain volatile. Buyers like Hennick & Company see opportunity in Midtown's recovery, betting on either a hotel turnaround or real estate conversion that capitalizes on the Central Park South location.
For tenants and future operators, the new ownership opens possibilities. The property's 16 floors and prime location make it valuable whether repositioned as hotel, residential, or mixed-use. Central Park South remains a coveted address, and a well-capitalized buyer may succeed where previous operators struggled.
The transaction underscores Manhattan's ongoing hotel market reset. Properties that failed to generate returns during the pandemic are changing hands at valuations far below their pre-COVID peaks. Hennick & Company's entry signals confidence in Manhattan's eventual recovery, though timing remains uncertain for actual repositioning or