NEW YORK CITY-The rumored sale of the Algonquin Hotel is now a done deal, according to HEI Hotels & Resorts, which announced today that it has sold the property. According to sources, the buyer is Cornerstone Real Estate Advisors, a Hartford, CT-based indirect MassMutual subsidiary that bought the hotel in an off-market transaction.
The 174-key Algonquin Hotel, current home of Matilda the Algonquin cat and for years home to the literati of the Algonquin Rountable, will continue to be operated by HEI on Cornerstone’s behalf.
“We purchased the hotel through our initial fund and have since then completed a renovation and affiliation with Marriott’s Autograph Collection brand,” Steve Mendell, HEI’s president - acquisitions and development, said in a prepared statement. “This transaction enabled us to cycle out of the investment, yet continue to maintain our presence in the attractive Manhattan marketplace.”
The purchase price was not disclosed and Cornerstone declined GlobeSt.com’s request for comment.
The sale adds to an ever-growing volume of hotel transactions in New York, where volume for Q1 2011 hit $643 million, according to Real Capital Analytics’ Hotel Quarter in Review report.
HEI bought the hotel in September 2005 from Miller Global Properties for $64 million, according to data from Real Capital Analytics. Cornerstone adds the Algonquin to a stable of 37 hotels. In addition, its debt portfolio includes 34 loans on 45 hotel properties.
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