GFI Capital and Elliott Pay $420M for Parker New York Hotel

NEW YORK CITY—The Parker New York Hotel, also known as Le Parker Meridien, will be renovated and reopened in 2021 under new ownership as a flagship Thompson Hotel. Fund manager Elliott Management Corporation and hotel developer GFI Capital acquired the Parker New York from the Jack Parker Corporation for $420 million in a deal which closed on Jan. 24.

Built in 1981, the 42-story hotel is located at 119 W. 56th St. It overlooks Central Park and is situated along the famed “Billionaires’ Row” corridor in Manhattan.

The new owners are spending more than $100 million to revitalize the hotel. The plans include adding new luxury residential condominium units, with Thomas Juul-Hansen designing interiors.

GFI Capital has extensive experience in New York City’s hospitality sector. Over 10 years ago, it opened the Ace Hotel New York and NoMad Hotel. The developer previously worked with Elliott on projects including the Beekman, a Thompson Hotel & Residences at 123 Nassau St. in Lower Manhattan. It converted the vacant 19th century Temple Court building into the Beekman. The hotel gained media attention making Condé Nast Traveler’s Gold List and Travel + Leisure’s World’s Best List.

Hyatt Hotels Corporation will operate the Parker New York Hotel as a Hyatt-affiliated hotel, while GFI Capital prepares the property for its full renovation expected to begin in 2020. The hotel will remain open during construction, prior to its relaunch.

“We are thrilled to acquire one of New York’s most iconic hotels. The Parker New York will complement our portfolio of legacy properties, which have created immense value for their respective neighborhoods and communities,” says Allen Gross, chairman and CEO of GFI Capital. “It’s a rare opportunity to acquire a hotel of this scale in a world-class neighborhood. I had the privilege of meeting Jack and Norma Parker on many occasions and we are honored to continue the legacy they created, and look forward to designing, renovating, and repositioning the Parker New York to add to its distinguished history.”

The hotel currently has 729 rooms with 9,000 square feet of meeting and event space. There are four restaurants including Norma’s, Burger Joint, Knave and Indian Accent, five retail stores and a fitness center and spa.

Lawrence Wolfe and James Kuhn of Newmark Knight Frank represented the sellers. Their colleagues, Jordan Roseschlaub and Dustin Stolly, advised the buyer on the financing. GFI Realty Services advised the buyer on the purchase and Kleinberg, Kaplan, Wolff & Cohen, P.C. provided legal counsel to the buyer in the acquisition and financing. Greenberg Traurig, LLP was the law firm representing the seller. Bank OZK provided acquisition and renovation mortgage financing.