The Real Deal New York

Hilton Garden Inn in Times Square sells for $127M

DiamondRock Hospitality Group pays $451K per guest room for property on West 42nd Street
September 03, 2014 08:30AM

DiamondRock Hospitality Group, a real estate investment trust that already owns 27 hotels across the U.S., purchased the Hilton Garden Inn/Times Square Central for $127.2 million.

The price works out to $451,000 per guest room.

DiamondRock predicts the hotel will generate $5 million of adjusted earnings in 2014, according to an announcement from the buyer.

“We expect this hotel to be very successful,” said President and CEO of DiamondRock Hospitality Mark Brugger in a statement. He added that he believes the Hilton Garden Inn will be one of the “highest profit margin hotels” in the company’s portfolio.

The hotel, which is operated by Highgate Hotels, is located on West 42nd Street between Sixth Avenue and Broadway. Its doors opened on September 1. — Claire Moses