Quadrum Global Exploring Sale of Arlo Hotels Brand

Ahead of the 10th anniversary of the Arlo Hotels brand’s launch, London-based Quadrum Global is exploring a potential sale of the business.

Quadrum tapped Moelis & Co. and Eastdil Secured to seek buyers for the brand and its underlying real estate, Bloomberg reported. There’s no guarantee the search process will result in a sale of the boutique lodging brand.

Moelis and Eastdil declined to comment to the publication, while Quadrum did not respond to the publication’s request.

Quadrum started the micro-hotel brand in 2016 after a collaboration with John Pritzker fell apart. The brand’s portfolio of seven hotels — designed for urban travelers — includes four locations in New York City (one of which is in Brooklyn), as well as one apiece in Chicago, Miami and Washington, D.C.

The brand leveled up at the start of 2023, when Quadrum acquired the bankrupt 147-key Williamsburg Hotel at 96 Wythe Avenue in Brooklyn for $96 million. The purchase came months after developers Toby Moskovits and Michael Lichtenstein were stripped of control of the hotel by a federal bankruptcy judge. 

Pod Hotel and Yotel were among the top players in the sector at the time of launch, at least in Manhattan. Competitors today include Marriott International’s citizenM brand and Generator Hostels.

There’s been significant recent investor activity in New York City’s hotel market, leading to plenty of wheeling and dealing of properties. This week, Andrew Farkas’ Island Capital and its joint venture partners, Three Wall Capital and MCR, listed the 725-key Lexington Hotel in Midtown East, eyeing a price of roughly $275 million; Eastdil is also involved in that sale.

The average occupancy rate in New York City exceeded 84 percent per week last year, up from a pandemic low of about 50 percent, according to a report by Lodging Analytics Research & Consulting. Expenses tied to labor costs, high interest rates and property taxes, however, continue to affect the industry’s bottom line. 

— Holden Walter-Warner

Read more

Quadrum launches micro-hotel brand Arlo

UK firm to buy Mostkovits, Lichtenstein’s bankrupt Williamsburg Hotel for $96M

Andrew Farkas eyes $275M for Lexington Hotel