Hilton Garden Inn Times Square Central Trades for $127M

NEW YORK CITY—Bethesda, MD-based DiamondRock Hospitality Co. has acquired the fee-simple condominium interest in the 282-room Hilton Garden Inn/Times Square Central hotel here for a purchase price of $127.2 million.

The deal, which equates to $451,000 per guestroom, closed on Aug. 29. The property opened on Sept. 1, 2014. The company expects the Hilton Garden Inn/Times Square Central to generate approximately $5 million of adjusted earnings in 2014 before interest, taxes, depreciation and amortization. The hotel, located on 42nd Street between Avenue of the Americas and Broadway, will be operated by Highgate Hotels.

"The acquisition of this new, state-of-the-art hotel located in the heart of Times Square is a great addition to our portfolio," says Mark W. Brugger, president and CEO of DiamondRock Hospitality. "The hotel enjoys a prime location within Times Square that will benefit from tremendous demand from both business and leisure travelers. Business demand will come from companies nationwide as well as those located in the over 5 million square feet of office space just within one block of the hotel.”

He adds, “Leisure demand is robust for this location with Times Square remaining the most visited tourist attraction area in the world with more than 39 million visitors per year. We expect this hotel to be very successful and one of the highest RevPAR and highest profit margin hotels within our portfolio."

The newly constructed hotel features floor to ceiling glass windows offering unparalleled views of Times Square. Within the hotel lobby is the hotel's onsite restaurant, The Garden Grille. The hotel also features a 24-hour Pavilion Pantry convenience mart located in the hotel lobby.

Additional amenities include a 24-hour self-service business center and a 24-hour fitness facility. Meeting space at the hotel includes a pre-set boardroom with the latest presentation technology to capitalize on small group business.

DiamondRock Hospitality is a self-advised REIT that owns 27 premium quality hotels with more than 11,000 rooms.