InterContinental Times Square hotel in New York said to near sale for US$230 million
The 607-room property was refinanced in 2018 with a US$190 million loan from Blackstone Mortgage Trust
[NEW YORK] Two prolific hotel investors are partnering to acquire the InterContinental New York Times Square hotel, as a frozen dealmaking market in the lodging industry begins to thaw.
Highgate, a leading player in the New York hospitality market, and Gencom, a luxury hotel owner, are nearing a deal to buy the 607-room property from its owners, including Tishman Realty, according to sources familiar with the negotiations.
The luxury hotel is expected to fetch about US$230 million, said one of the sources, who asked not to be identified discussing a private transaction. Eastdil Secured is advising on the deal.
Representatives for Eastdil and Gencom declined to comment. Spokespeople for Highgate and Tishman did not immediately respond to requests for comment.
The hotel opened in 2010 in a sleek, 36-storey tower on Manhattan’s W 44th Street, a modern counterpart to the historic InterContinental New York Barclay on the east side of Midtown. The Times Square property was refinanced in 2018 with a US$190 million loan from Blackstone Mortgage Trust, public records show.
Highgate, led by brothers Mahmood and Mehdi Khimji, operates more than 87,500 hotel rooms globally, according to the company’s website.
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It’s both an active investor in hotel deals as well as a third-party manager. Gencom, based in Miami, is best known as the owner of luxury hotels, including Ritz-Carlton properties in Miami, Philadelphia and New Orleans.
Hotel investment activity in the US fell into a lull earlier this year, as high interest rates and uncertainty surrounding the impacts of an emerging tariff policy stifled dealmaking.
Interest in lodging transactions has picked up in recent weeks, thanks to lower rates and renewed confidence that affluent travellers will continue to pay high prices.
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