Rosen buys the Paramount Hotel for $275M

TRD New York /
Jun.June 08, 2011 08:27 AM

Adding to a portfolio that includes the Seagram Building and Lever House, developer Aby Rosen’s RFR Holding has bought the Paramount Hotel for $275 million from Walton Street Capital and Highgate Holdings, according to the Wall Street Journal. The deal is expected to close in the third quarter of 2011.

RFR had an incentive to buy, the Journal said, taking advantage of a tax law by reinvesting proceeds from a recent sale to defer a capital-gains payment.

The 597-room hotel, situated at 235 West 46th Street between Broadway and Eighth Avenue, was transformed in the 1980s by hotelier and then-owner Ian Schrager and designer Philippe Starck into a fashionable Manhattan nightspot. It underwent a $40 million renovation and received landmark status in 2009.

The hotel faces stiff competition from large hotels around Times Square. It is currently offering rooms starting at $259 a night for a Saturday night stay, relatively cheap for a prime location.

Last month, it was reported that Rosen and his business partner Michael Fuchs were running into difficulties with some of their former partners. [WSJ]


Related Articles

arrow_forward_ios
The economy beat expectations in June, adding 4.8 million jobs, with retail and hospitality leading the way. But a surge in coronavirus infections threatens further gains. (Getty)

Retail and hospitality led June job gains as virus surged

Retail and hospitality led June job gains as virus surged
Alex Sapir with the NoMo Soho hotel at 9 Crosby Street (Nomo Soho)

Sapir Corp’s earnings highlight challenges facing NYC hotels

Sapir Corp’s earnings highlight challenges facing NYC hotels
The Seagram Building at 375 Park Avenue with a photo illustration of RFR's Aby Rosen (Getty, Google, iStock)

Aby Rosen to build sprawling gym in Seagram Building

Aby Rosen to build sprawling gym in Seagram Building
The rate of job loss in America has stabilized, even though businesses continue to hemorrhage employees at unprecedented levels. (iStock)

Unemployment filings stabilize — but at record highs

Unemployment filings stabilize — but at record highs
GFI Capital CEO Allen Gross and the James Hotel at 22 East 29th Street (Google Maps)

GFI Capital takes majority stake in James Hotel in $110M deal

GFI Capital takes majority stake in James Hotel in $110M deal
Federal Reserve Chairman Jerome Powell (Getty, iStock)

Real estate stocks outperform broader market but still sink

Real estate stocks outperform broader market but still sink
Part Two: Brookfield’s Brian Kingston on Manhattan West, Lever House and working from home

Part Two: Brookfield’s Brian Kingston on Manhattan West, Lever House and working from home

Part Two: Brookfield’s Brian Kingston on Manhattan West, Lever House and working from home
The construction, retail and restaurant sectors led May’s surprising jobs rebound, while the hotel industry continued to suffer. (Getty, iStock)

Construction, retail, restaurants lead May jobs rebound

Construction, retail, restaurants lead May jobs rebound
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...