(Bloomberg) -- Starwood Capital Group is nearing a deal to sell the 1 Hotel Central Park to Host Hotels & Resorts Inc. as high room rates drive investor interest in Manhattan’s lodging market.

The deal isn’t final and could still fall through, said people familiar with the matter who asked not to be identified discussing private details. Starwood sought more than $1 million per room for the property in a 2016 effort that did not lead to a sale. The hotel has about 230 rooms. 

A representative for Starwood didn’t immediately respond to a request for comment. A Host representative declined to comment. 

Starwood opened the Manhattan property in 2015 as part of billionaire Barry Sternlicht’s 1 Hotel brand, with an ivy-covered facade and a restaurant that serves seasonal cuisine from chef Jonathan Waxman. 

Manhattan hospitality owners are benefiting from greater pricing power, as a recent crackdown on short-term rental listings and a program to house migrants in local hotels have combined to constrain lodging supply. New city restrictions are likely to limit further hotel development and expansion. 

Host Chief Executive Officer Jim Risoleo has been on a buying spree. The company agreed in May to purchase the Turtle Bay Resort in Hawaii from Blackstone Inc. for about $680 million, net of key money. It struck a deal to buy the 1 Hotel Nashville and an adjacent Embassy Suites from a group led by Starwood in April.

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