City’s first JW Marriott coming to Essex House

TRD New York /
Aug.August 17, 2012 03:00 PM

The neon sign atop the Essex House may stay, but the name won’t. Strategic Hotels & Resorts confirmed its reported purchase of the former Jumeirah Essex House at 160 Central Park South for the price of $362.3 million and said it would flag the hotel with Manhattan’s first JW Marriott, Bloomberg News reported.

Marriott signed a 50-year management agreement to operate the property, to be named the JW Marriott Essex House, and guaranteed a net operating income of as much as $21.5 million annually for eight years. The deal, financed with a $190 million loan from Bank of America, is expected to close by Sept. 7. Strategic will spend about $18.3 million on renovations and a marketing campaign.

Strategic bought the 509 hotel rooms and nine condominium units for $685,000 per unit from Dubai Investment Group, which purchased the entire property in 2005, from Strategic, for $440 million and spent $90 million on a renovation and partial condo conversion. Crain’s said the new owners are considering additional financing options to raise cash for the project, including a possible joint partnership or property sales. [Bloomberg] and [Crain’s]Adam Fusfeld

Related Articles

Alex Sapir and the NoMo Soho hotel at 9 Crosby Street (Credit: NoMo SoHo)

Sapir Corp.’s stock drops in Tel Aviv

181 Varick Street (Credit: Google Maps)

Claremont Companies buys Soho Marriott for $59M

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel

Clockwise from the top left: Jackson Park at 28-40 Jackson Avenue, 240 Willoughby Street in Fort Greene, 664 Pacific Street in Brooklyn, and 247 Metropolitan Avenue in Williamsburg (Credit: StreetEasy, Google Maps, Pacific Park Brooklyn, The Pod Hotel)

These were the top 10 outer-borough loans last month

(Illustration by Carl Wiens)

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M