Maefield acquires Doubletree Times Square stake for $540M

Deal for hotel at 1568 Broadway valued at just over $1.15 million per key

New York /
Dec.December 21, 2015 01:53 PM

Maefield Development acquired the leasehold interest in the Doubletree Guest Suites Times Square hotel from Sunstone Hotel Investors for a purchase price of $540 million.

The deal for the 468-room hotel at 1568 Broadway is valued at just over $1.15 million per key, with Maefield announcing a “planned redevelopment of the property into a premier cultural entertainment, retail and hospitality experience” in the middle of Times Square.

That redevelopment would include a renovation of the hotel, as well as street-front retail and entertainment space and a new “super-high-resolution” LED screen on the building’s facade, Indianapolis-based Maefield said, as well as the restoration of the historic Palace Theatre at the site.

Howard Michaels‘ Carlton Group advised Maefield on the financing of the acquisition. Maefield is also a stakeholder in the 20 Times Square hotel, retail and entertainment development located across the street from 1568 Broadway.

Sunstone – a California-based real estate investment trust that has interests in 29 hotels comprised of nearly 14,000 rooms across the country – said the sale represents more than 25 times the Doubletree’s forecasted adjusted EBITDA of $21.3 million for 2015, as well as a 3.4 percent capitalization rate on forecasted 2015 net operating income.

The REIT acquired its interest in the hotel property from a partnership led by Goldman Sachs unit Whitehall for $286 million in January 2011. – Rey Mashayekhi


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Community Development Corporation of Long Island CEO Gwen O'Shea (CDCLI, iStock)
Nassau County aims to salvage $6M rent relief program
Nassau County aims to salvage $6M rent relief program
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Senator Chuck Schumer and 70 Prospect Park West (Google Maps, Getty)
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Dick Cavett and the property in Montauk (Compass, Wikipedia)
Dick Cavett sells estate for $24M in priciest Montauk deal this year
Dick Cavett sells estate for $24M in priciest Montauk deal this year
5 homes for autumn on the Upper West Side, à la ‘When Harry Met Sally’
5 homes for autumn on the Upper West Side, à la ‘When Harry Met Sally’
5 homes for autumn on the Upper West Side, à la ‘When Harry Met Sally’
arrow_forward_ios

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

Loading...