Three real estate investment firms are teaming up to acquire, a 36-story hotel for $230 million.
Highgate, Gencom and Argent Ventures also got a $190 million loan from Monroe Capital for the Times Square hotel, according to a report from the Commercial Observer. MetLife Investment Management and Tishman Realty were the sellers.
Previously, IHG Hotels & Resorts managed the property — but after the deal, Highgate will take over the duties. However, the branding will change to an IHG franchise, according to the CO.
InterContinental, which was delivered in 2010, cost $500 million to build, as reported by Crain’s New York Business. The site at 300 West 44th Street consists of 607 rooms. The hotel has a restaurant, a fitness center and a cocktail bar.
Eastdil Secured represented both Tishman and MetLife on the deal.
The buy by the investment group comes a couple of months after another major hotel traded hands in Manhattan. Cain acquired The Dominick Hotel in SoHo for $175 million, with plans to reposition the asset.
Meanwhile, the hotel sector faces headwinds — especially in New York City. The New York City Tourism + Conventions has projected that just 64.1 million people will visit the city this year, as economic headwinds persist. That's expected to result in a direct spending loss of more than $4 billion.
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