Andrew Farkas’ Island Capital, in partnership with Three Wall Capital and MCR, has listed the Lexington Hotel in Midtown East for sale, targeting a price of approximately $275 million. The marketing is being handled by Eastdil Secured.
The Lexington Hotel, which opened in 1929 and was designated a landmark in 2016, has a notable history. It once hosted celebrities such as Marilyn Monroe and Joe DiMaggio during their marriage in the 1950s. The hotel is among the last remaining large hotels on what was formerly known as “hotel row” along Lexington Avenue between 52nd and 45th Streets. Over the past decade, several nearby hotels have been converted to other uses or closed; for example, the former Midtown DoubleTree and Marriott East Side are now student housing, while the Maxwell hotel closed in 2020.
Other major Midtown hotels have also seen changes. The Waldorf Astoria reduced its number of rooms from 1,400 to 375, and there are plans for the Roosevelt Hotel to be sold and redeveloped into an office tower.
The Lexington is now positioned as one of the few remaining large-scale hotels in its area. Its proximity to major office buildings—including JP Morgan Chase’s new headquarters located one block west—could appeal to potential buyers seeking to benefit from business travel demand.
Island Capital and its partners acquired the property in 2021 for $185 million after it had been closed due to the pandemic. Before reopening under Marriott International’s Autograph Collection brand, it underwent renovations by previous owner DiamondRock Hospitality.
The sale comes at a time when New York City’s hotel sector is seeing strong recovery. According to Lodging Analytics Research & Consulting, average occupancy rates surpassed 84 percent per week in 2024—a significant increase from pandemic lows near 50 percent. However, operators continue to face challenges related to labor costs, high interest rates, and property taxes.
Eastdil Secured declined to comment on the listing.
