NEW YORK CITY-A large Chinese investment firm has made a big hotel play on lower Fifth Avenue. Hong Kong-based Great Eagle Holdings Ltd. has acquired the 60-story Setai Fifth Avenue from seller Bizzi & Partners for $229 million, or roughly $1,070 per unit.
Capella Hotels, the hotel franchiser, will represent the property until January 15, 2013. “Our entire team worked diligently to establish The Setai as one of the premier luxury hotels in New York City in a location that was not considered part of the traditional luxury hotel corridor,” says Horst Schulze, chairman and CEO of Capella, in a statement. “Additionally, we were able to create an atmosphere and reputation that led to residential real estate sales for the owners.”
As part of the decision, the company intends to maintain its focus on core business practices and manage hotels under the banner of Capella Hotels and Resorts. The expansion will continue with the opening of flagships in Georgetown, Washington, DC.
Capella Hotels also has locations in Cabo San Lucas, Dusseldorf, Ixtapa and Singapore, but is planning to make a play again in Manhattan. Schulze says “New York City remains a prime location for the Capella Hotel Brand” and looks forward to “announcing our return in the near future.”