The Real Deal New York

Starwood Capital looks to sell all three 1 Hotels properties

Portfolio, which sources value at $800M, includes Central Park and as-yet-incomplete BK Bridge Park hotels

June 23, 2016 06:00PM
By Mark Maurer Twitter_logo_blue copy

Clockwise: Barry Sternlicht, 1 Hotel Central Park, Rendering of 1 Hotel Brooklyn Bridge and 1 Hotel South Beach

Clockwise, from left: Barry Sternlicht, 1 Hotel Central Park, 1 Hotel Brooklyn Bridge and 1 Hotel South Beach

Barry Sternlicht’s Starwood Capital Group is looking to sell all three hotels in its fledgling “eco-luxury” brand 1 Hotels, including two in New York City, sources told The Real Deal.

The development firm could sell the hotels as one package or piecemeal, and sources familiar with the marketing process expect them to fetch north of $800 million.

The hotel brand launched last year with the opening of the Miami Beach flagship. Starwood then set its sights on New York.

The 1 Hotel Central Park, which is an 18-story, 229-key property, opened at 1414 Sixth Avenue in August. Starwood secured a $125 million refinancing for it shortly after. The 10-story, 194-key 1 Hotel Brooklyn Bridge is slated to open later this year at the Pierhouse complex in Brooklyn Heights.

Earlier this month, The Real Deal reported that 1 Hotel South Beach was being marketed. Sources expect that building – an 18-story, 426-key hotel in Miami Beach – to sell for $1 million per room, sources said.

Sources peg the Central Park hotel to fetch north of $1 million per room, and the Brooklyn Bridge Park hotel to fetch about $800,000 per room.

Hodges Ward Elliott is marketing all three hotels for sale, sources said.

Amid the boom in supply of New York City hotels, Starwood selling new-construction projects allows the firm to capitalize on the market and focus on third-party management, sources said.

“If they wait three or four years before selling, they could run into fund-life issues,” said an investment sales broker not involved in the deal.

Representatives for Starwood and HWE declined to comment. Starwood also recently listed a large portfolio of U.S. malls valued at $1.2 billion.

MENU