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At the New York Palace, caught in a bitter feud between Leona Helmsley and her limited partners, occupancy is up and so are profits. General Manager Klaus Ottman says "a great number" of interested buyers have been visiting the property.
The Palace is on the block because a sale is required by an arbitrator's ruling taking control away from Mrs. Helmsley. The Plaza's available too, put there by Citicorp, which became the general partner after a prepackaged bankruptcy filing last year. While many hotels deny such reports, industry insiders say "For sale" signs hang on the Sheraton Park Avenue, Embassy Suites, Barbizon, St. Moritz, Hotel Macklowe and the Omni Park Central.
The hint of economic recovery, improved year-end hotel revenues and a growing sense of optimism have encouraged several property owners to take steps gingerly toward the selling block. Obstacles remain, of course, especially in setting prices. But industry watchers say after more than two stagnant years, deal-making may soon return to the Manhattan hotel market.
"I'm much more bullish than I have been in recent years," says Peter Krause, who follows the lodging and hospitality industry for Morgan Stanley. "Everything is looking very positive. The trend is...