Southern California-based Sunstone will invest $68.5 million in the acquisition. The total acquisition price is not known. This latest acquisition adds to Sunstone's portfolio which includes interest in more than 50 hotels totaling 16,218 rooms. The Doubletree meets the company's acquisition criteria, which includes a minimum deal size of $25 million, between 200 and 1,000 rooms, high barrier to entry locations in top 25 US markets.
"The Doubletree Guest Suites Times Square is a market leading, all-suite hotel in a truly irreplaceable location," says Robert Alter, Sunstone's CEO, in a statement. "This investment structure increases our opportunity to participate in the growth of the dynamic Times Square hotel market while offering a compelling current yield."
The Doubletree opened in 1990 and then received a major room renovation in 2005.
This purchase ends a year in which several of the major Times Square buildings have traded hands. In March Sunstone purchased the Hilton Times Square for $242.5 million from Forest City Ratner Cos. The 444-key building is located at 234 West 42nd St. Dubai-based Istithmar, which has been very active in Manhattan's market this year, purchased 6 Times Square, the former Knickerbocker Hotel, for $300 million in April. The firm also purchased the W Hotel Union Square in October for $285 million, 280 Park Ave. in June for $1.2 billion, and is rumored to have signed contracts to purchase the Mandarin Hotel near Columbus Circle, although the company has yet to confirm this acquisition.
In September, Sunstone divested itself of 13 hotels for $144 million, as reported by GlobeSt.com. The sale of this portfolio, which was composed of non-core assets, is part of Sunstone's strategy to focus on acquisitions in major markets.
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