Hyatt pays $390M for full ownership of One57 hotel component

Original deal was for two-thirds interest in 210-room Park Hyatt

New York /
Aug.August 08, 2014 11:25 AM

Hyatt Hotels Corporation paid $390 million for a 100 percent stake in the Park Hyatt hotel component of Extell Development’s One57 tower project.

The acquisition covers all costs related to the construction of the hotel. Hyatt was slated to take two-thirds of the total hotel stake when the Chicago-based chain partnered with Extell in 2010.

“First, whole ownership provides us more flexibility and control to recycle the asset at the right time,” Hyatt CEO Mark Hoplamazian said in an earnings call cited by GlobeSt. “Second, whole ownership allows us the ability to purchase the hotel on an all-cash basis, which makes sense given our balance sheet and liquidity position. Third, whole ownership, as opposed to joint venture ownership, allows for the deferral of gains on certain hotels that we expect to sell.”

The 210-room hotel, set to open later this month, is seeking a five-star designation. Room prices will begin at $795 per night. Amenities will include an indoor pool with underwater speakers that stream music from Carnegie Hall. [GlobeSt]Mark Maurer


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)

Extell lands $690M refinancing package for One Manhattan Square

Extell lands $690M refinancing package for One Manhattan Square
Extell Development's Gary Barnett and 32 West 48th Street (Google Maps)

Extell makes its Diamond District hotel official

Extell makes its Diamond District hotel official
217 West 57th Street with Extell Developement's Gary Barnett and Corcoran's Pamela Liebman (Photos via Extell; Barnett via Anuja Shakya)

Extell brings on Corcoran Sunshine to help market Central Park Tower

Extell brings on Corcoran Sunshine to help market Central Park Tower
Lanhee Yung and Sush Torgalkar (Photos via Cornell; Getty)

Extell, Starwood alums seek $500M for “contrarian” investing

Extell, Starwood alums seek $500M for “contrarian” investing
Extell's Gary Barnett and a rendering of 50 West 66th Street (Courtesy of Snøhetta)

Judge throws cold water on Extell’s UWS condo development

Judge throws cold water on Extell’s UWS condo development
Tel Aviv Stock Exchange bull (Wikimedia Commons)

NYC developers face downgrades on Israeli bond market

NYC developers face downgrades on Israeli bond market
Claude Wasserstein and 995 Fifth Avenue (Getty, Google Maps, Sotheby's)

Claude Wasserstein relists UES penthouse for $55M

Claude Wasserstein relists UES penthouse for $55M
Gary Barnett and Sush Torgalkar with 225 West 57th Street, 225 West 86th Street, and 169 Columbia Heights in Brooklyn (Credit: Getty Images, iStock, and CityRealty)

Torgalkar out as CEO of Extell: sources

Torgalkar out as CEO of Extell: sources
arrow_forward_ios

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

Loading...