NEW YORK CITY—Blackstone Group has sold the London Hotel in Midtown to a sovereign wealth fund for $382 million, or $678,000 per room, according to the New York Post.
The buyer was the Abu Dhabi Investment Authority, which also owns the Hyatt Times Square and the Marriott Edition on Madison Square Park. The new owner is expected to retain the current management team.
The transaction included a $194 million direct sale of the 54-story hotel and the buyer assumed the mortgage of $154 million while also purchasing the furnishings and fixtures. An Eastdil Secured team of Roy March, Larry Wolfe and Mark Schoenholtz represented Blackstone in the sale. The brokerage firm could not be reached by GlobeSt.com at press time.
The ADIA also assumed the ground-lease position owned by the Sol Goldman estate, which will receive a total rent of $157 million through 2136. The hotel was greated by legendary television chef Gordon Ramsay.
Blackstone renovated the 563-room hotel, at 151 W. 54th St. between Sixth and Seventh Avenue, after buying it from Lehman Bros. A Blackstone spokesperson did not respond by press time to GlobeSt.com's request for comment.
The private equity firm remains bullish on hotels, it retains other holdings in the sector, including controlling interests in both Hilton Hotels Corp. and La Quinta Inns & Suites, and it recently acquired Strategic Hotels & Resorts. However, it alsohas been focused on the multifamily segment of late.
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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.
