“It is an independent hotel, so it is not tied to a brand or a management company,” Barnello says. “We have the luxury of making it into anything we want. That’s a huge, huge thing for us to be aligned with the operator. It can be anything down the road.”

Originally constructed in 1928, the property has undergone several renovations over time. With the acquisition now complete, the REIT is planning a $30 million to $35 million renovation here, which will include improvements to the lobby, guest bathrooms, corridors and guestrooms. The renovations will start toward the end of Q4 2012 and will finish in Q1 2013.

After the renovations are complete, Barnello says the REIT is aiming to attract new clientele and increase room rates. “That’s really our game plan,” he says. “We are hopeful that once we are done with the renovations, we will be able to attract more corporate accounts and more higher-end corporate accounts. With that will come higher-rated business, and after the renovations, we will be able to charge more money because the product will be much nicer.”

The property—located three blocks from Central Park—features more than 14,000 square feet of meeting space, including the 8,500 square foot Grand Ballroom. The property also includes 4,800 square feet of retail space.

From a citywide perspective, Sumner Baye, president of the International Hotel Network, LLC, tells GlobeSt.com that the $396 million deal—which averages to $400,000 per key—is “within reason” for Midtown today. “That’s a pretty good price to pay for a property given the history combined with it,” he says, noting its “great location” and “interesting possibilities” for restoration.