Dubai sells top New York hotel for $362.3m
Chicago-based Strategic Hotels & Resorts on Saturday confirmed an agreement with Dubai Investment Group to buy a luxury New York hotel for $362.3m.
The company said in a statement that it has signed an agreement to purchase the Jumeirah Essex House Hotel in Manhattan.
The purchase price includes 509 hotel rooms, nine condominium units and significant hotel-level cash reserves, it said.
Dubai Investment Group bought the Essex House in 2005 for $423.9m, according to real estate research and information company Real Capital Analytics.
Strategic Hotels said it has also signed a 50-year management agreement with Marriott International to rebrand the hotel as the JW Marriott Essex House New York.
Strategic Hotels plans to invest approximately $18.3m in various property improvements, including renovations to various common areas, select systems upgrades as well as new signage and other branding efforts to distinguish the property under the JW Marriott flag.
An affiliate of Strategic Hotels previously owned the Essex House Hotel, having sold it to the Dubai Investment Group in 2005.
Laurence Geller, president and CEO of Strategic Hotels & Resorts, said: "The Essex House is one of New York City's most recognised high-end hotels, and I am pleased that we are able to reacquire this landmark asset and convert it to the first JW Marriott in Manhattan."
"We're delighted to have been chosen by our valued partners at Strategic Hotels & Resorts to manage the iconic Essex House Hotel on Central Park South, making it the home of our first JW Marriott hotel in New York City," added Arne Sorenson, president and CEO of Marriott International.
Towering 40 floors and offering commanding views of Central Park, the Essex House Hotel is among the most luxurious in Manhattan.
The hotel has played host to world dignitaries and celebrities alike since opening in 1931. The building underwent a comprehensive $90m renovation in 2007.
Strategic Hotels & Resorts currently has ownership interests in 17 properties with an aggregate of 7,762 rooms and 840,000 square feet of multi-purpose meeting and banqueting space.
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