US Bankruptcy Court Orders Sale of JFK Plaza Hotel

Optimum Hotel Brokerage LLC Retained as Exclusive Broker

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. February 08, 2011

February 7, 2011 - Optimum Hotel Brokerage announced today that the firm has been retained as the exclusive broker representing the trustee for the Chapter 11 estate of CPJFK, LLC in the sale of the JFK Plaza Hotel (formerly the Crowne Plaza JFK) in Jamaica, New York. Joe McCann, president of Optimum Hotel Brokerage LLC and Licensed New York Real Estate Broker is the exclusive broker handing the sale. The all-cash sale of the leasehold interest in the 183-unit full service hotel, located in the heart of the John F, Kennedy International Airport market, will be sold through an accelerated marketing process with a formal call for offers deadline of March 1, 2011.

The five-story hotel features a restaurant, lounge, outdoor patio and more than 3,000 square feet of meeting space. Despite the loss of the Crowne Plaza flag in 2008, and being closed for a 12-month period in 2008 and 2009, the hotel reopened for business in April 2010 and currently accommodating guests as an independent hotel. The hotel could qualify for a number of flags available in the market.

“The JFK Plaza Hotel has always held a prominent position in the JFK market. Both the greater New York City and JFK markets are experiencing strong RevPAR growth over the past year and analysts expect continued growth into 2011”, said McCann. “According to Smith Travel Research, the competitive set of the hotel averaged a $112 RevPAR in 2010, a 19% increase over 2009. With JFK International Airport increasing to more than 47 million passengers this year, lodging investors are optimistic about this international gateway market.”

The sale is being ordered and approved by the United States Bankruptcy Court Eastern District of New York. The sale will be structured as a “363 Sale”, where all assets under a Chapter 11 bankruptcy are sold as a going concern. The trustee, in effect, has “stepped into the shoes” of the debtor as the debtor in possession. The leasehold interest in the property is being sold “as is, where is” and without any representations, covenants, guarantees or warranties of any kind or nature whatsoever, and regardless of any issues as to title, if any.

“Given the circumstances and nature of the bankruptcy, the current trustee was unable to obtain much historical financial information or customary due diligence materials commonly available in hotel asset transactions.” McCann explained. “However, our offering materials include in-depth market data and property information that will be of assistance for buyers valuing the property. Confidentiality agreements can be executed on our website (www.optimumbrokerage.com) and interested principals can access the property's Offering Memorandum and due diligence materials directly on the site,” he added.

Optimum Hotel Brokerage is also a member and Joe McCann is president of Hotel Brokers International, the world's largest and oldest hospitality real estate organization, which has a rich heritage of experience and expertise in hotel real estate valuation, transactions and other essential services. Comprised of some 50 hotel real estate broker specialists, HBI provides the hospitality industry with its most powerful hotel real estate marketing force, creating greater visibility through a unified and inclusive advertising and marketing approach. Mr. McCann has earned the designation of Certified Hotel Broker, with distinction, from the organization, and was recognized as HBI's Broker of the Year for the Northeast Region for many years.. HBI has also awarded McCann with the Portfolio Sale of the Year, and Unique Deal of the Year. Optimum Hotel Brokerage and Joe McCann was awarded HBI's prestigious Broker of the Year Award in 2006.

Mr. McCann is president of the Penn State Hotel and Restaurant Society, representing the more than 5,000 alumni of Penn State's renowned School of Hospitality Management. Optimum Hotel Brokerage has endowed scholarships at the school to provide financial assistance to students demonstrating financial need at the school.

For complete exclusive listings of hotels for sale, please go to www.optimumbrokerage.com. For a complimentary valuation of your hotel, call 215-572-7711.