A partnership of Apollo Global Management and Chartres Lodging Group has acquired the Novotel Times Square hotel for about $94 million, French-based seller Accor Group announced today.
As part of the agreement Apollo and Chartres will undertake a $118 million renovation of the 480-room hotel at 226 West 52nd Street, near Broadway, as specified by Accor, which will continue to manage the hotel. The 18-month renovation will include new heating and air conditioning systems, upgrades to rooms and public areas, a new fitness center, a terrace bar that overlooks Times Square and new business meeting rooms that overlook Broadway, according to Chartres. The hotel will remain open throughout.
“Our substantial investment in the Novotel Times Square demonstrates our confidence in the continued recovery of the New York City economy and overall lodging market,” Joe Azrack, managing partner of Apollo, said in a statement.
Accor has owned and operated the 26-story hotel since erecting it in 1984. It began seeking a sale last March through Jones Lang LaSalle, but required a buyer to keep Accor on as the hotel’s manager. — Adam Fusfeld