Sheraton Hotel in Weehawken Back on Market After Pandemic-Driven Value Collapse

By early 2021, loan sponsor Hartz Financial Group pulled support for the property, leading to a court-appointed receivership. Although occupancy hovered around 66% during 2021 — with weekends fully booked — the financials weren’t enough to avoid foreclosure proceedings. The property was listed in 2022, delisted after weak interest, and re-listed after modest improvements in cash flow.

A buyer has now been approved, with a closing expected this year. Notably, the asset's value has dropped another 14% since May 2024. The Sheraton isn’t the only Weehawken hotel to change hands recently — Veris Residential sold a pair of nearby hotels for $97M in 2023 as part of its commercial exit strategy.

The sale underscores ongoing distress in the hospitality sector, particularly for urban hotels that suffered deeply during the pandemic and struggled to regain pre-COVID value despite recovering occupancy levels.