NEW YORK CITY—On behalf of Hidrock Realty and Robert Finvarb Companies, JLL's Hotel & Hospitality Group today announced the closing of KSG Enterprises Ltd., a subsidiary of Keck Seng (Malaysia) Berhad, has acquired the SpringHill Suites New York Midtown Manhattan/Fifth Avenue for $82 million. The seller was Hidrock Realty and Robert Finvarb Cos.
JLL managing director Jeffrey Davis and EVP Gilda Perez-Alvarado represented the buyer. Hidrock's senior director of hotel management Michael Powlen and Finvarb CFO Daniela Trudel handled the transaction on behalf of ownership. According to JLL, Manhattan's lodging transaction volume is expected to reach up to $2.8 billion in 2014 and all signs show that investors continue to place their confidence and capital in the market.
“KSG seized an excellent opportunity to acquire this recently constructed asset at a strong yield and has strategically expanded their presence in the United States,” says Davis. “SpringHill Suites benefits from its premiere brand recognition and benefits from Marriott's best-in-class management.”
“After 22 months of construction, we opened the SpringHill Suites just over a year ago and were extremely impressed with its performance, adds Powlen. “The hotel ramped up very quickly and was number one in its competitive set for the average daily rate within five months. The strong partnership between Hidrock, Robert Finvarb Companies and Marriott really worked to make this property a success.”
The 19-story, 173-key hotel is located at 25 W. 37thSt. and was developed from the ground up by Hidrock and Finvarb Cos. The hotel opened in May 2013 and achieved 90% occupancy almost immediately.
It features a contemporarily-designed breakfast room, a fully-equipped business center, a fitness center and nearly 300 square-feet of ground floor retail. The property is in the heart of Midtown, near Times Square, Grand Central and Herald Square, and is close to more than 280 million square-feet of office properties, numerous cultural attractions, and globally-renowned shopping, dining and entertainment venues.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
