Park Central Hotel sells for $405.5M

June 06, 2011 06:15PM

Bethesda, Md.-based real estate investment trust LaSalle Hotel Properties has agreed to purchase the Park Central Hotel at 870 Seventh Avenue between 55th and 56th streets for $405.5 million, according to Crain’s. The deal is likely to close in the third quarter of 2011.

The 934-room hotel, built in 1928, is currently owned by Highgate Holdings, which will continue to operate and manage the hotel after the sale. The property is slated to undergo a $30 million to $35 million renovation next year, including upgrades to guest rooms, bathrooms, corridors and lobby.

La Salle currently owns two Manhattan hotels — Gild Hall at 15 Gold Street and Hotel Roger Williams at 131 Madison Avenue — and more than 35 throughout the U.S.. It has partnered up with other hotel companies such as Hyatt Hotels, Westin Hotels and Resorts and Hilton Hotels.

Established hotels such as the Park Central remain a hot commodity in the market, Crain’s said.

“When you look at the return on hotel investment, New York has been the darling of major markets,” said Sean Hennessey, CEO of Lodging Advisors, an industry consulting firm. [Crain’s]