Former JFK Airport Crowne Plaza goes to bankruptcy sale

NEW YORK CITY A federal bankruptcy court has ordered the sale of the 183-key JFK Plaza Hotel, formerly called Crowne Plaza JFK Airport, which lost its flag in 2008.

Optimum Hotel Brokerage has been retained to represent owner CPJFK LLC in the sale of the property near New York City’s John F. Kennedy International Airport. Bids are due by March 1.

The five-story hotel, which closed for 12 months before reopening in April, features a restaurant, lounge, outdoor patio and more than 3,000 sq. ft. of meeting space.

“The JFK Plaza Hotel has always held a prominent position in the JFK market,” says Optimum President Joe McCann. “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.”

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,” in which 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.

“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 says. “However, our offering materials include in-depth market data and property information that will be of assistance for buyers valuing the property.”