Chesapeake's James Francis (top), 52 W. 36th St. (credit: Greg Hafkin) and McSam's Sam Chang
The McSam Hotel Group is under contract to sell the 185-room hotel it is developing at 52 West 36th Street to Baltimore-based Chesapeake Lodging Trust for $76.5 million, according to Chesapeake.
Construction on the 25-story Hyatt Place, the brand’s previously announced first foray into Manhattan, is expected to finish in the third quarter, at which point the deal will close. Chesapeake is also providing $6.5 million in bridge financing, to complete the development as McSam had planned. McSam purchased the lot for $15.23 million in 2006. It’s one of three hotels in development on West 36th Street between Fifth and Sixth avenues.
The deal marks Chesapeake’s second hotel acquisition in the Herald Square area in less than two months. In December it purchased the then-under-construction 122-room Holiday Inn at 30 West 31st Street for $52.2 million and opened Jan. 19. Chesapeake chose Maryland-based Real Hospitality Group to manage both hotels.
The price works out to about $414,000 per key.
“We expect the Hyatt Place to ramp-up very quickly given the robust demand in Manhattan, the strength of the Hyatt brand, and our operator’s extensive experience managing hotels in New York City,” Chesapeake CEO James Francis said in a statement.
McSam has sold several properties under development in the last year, including an East Village condominium project, and two hotel projects in Lower Manhattan. – Adam Fusfeld
