QIA in talks for Starwood’s St. Regis hotels: report

Qatar's sovereign wealth fund could buy NYC, San Francisco properties for $1B

New York /
May.May 05, 2016 08:05 AM

The Qatar Investment Authority, the energy-rich nation’s sovereign wealth fund, is reportedly in advanced negotiations to buy the St. Regis luxury hotels in New York and San Francisco from Starwood Hotels & Resorts.

Both hotels are owned by Starwood Hotels & Resorts, which is currently finalizing a $12.4 billion takeover by fellow international hotel chain Marriott International that is expected to create the world’s largest hotel operator. Starwood is looking to sell five U.S. hotels in advance of the deal’s closing, including properties in Maui, Atlanta and Chicago, while also seeking a leasehold sale of the W New York in Times Square.

The landmarked St. Regis New York, at 2 East 55th Street off Fifth Avenue, holds 238 rooms, while its counterpart in San Francisco has 260 rooms, according to Bloomberg. While the pair of hotels could fetch as much as $1 billion, sources with knowledge of Starwood’s talks with QIA said they could sell for less.

The hotels would represent QIA’s latest ambitious real estate play in New York, with the sovereign wealth fund detailing plans last year to invest $35 billion in the U.S. over the next five years. QIA also acquired a 44 percent interest in Brookfield Property Partners’ $8.6 billion Manhattan West mixed-use development on the Far West Side, and opened a New York office in September to improve its access with the U.S. market.

A deal between Starwood and the sovereign wealth fund would indicate continuing, strong interest from foreign buyers in U.S commercial real estate assets. Last month, Saudi investor Olayan Group agreed to acquire the Chetrit Group’s Sony Building at 550 Madison Avenue in a deal valued at north of $1.3 billion, as The Real Deal first reported. [Bloomberg]Rey Mashayekhi


Related Articles

arrow_forward_ios
Centrale at 138 East 50th Street and Ceruzzi president Arthur Hooper (The Centrale NYC, Hooper via Sasha Maslov/Illustration by Kevin Rebong for The Real Deal)
Korean lender sues for $40M over Ceruzzi condo mezz loan
Korean lender sues for $40M over Ceruzzi condo mezz loan
Canada, South Korea, Germany, Singapore, and the UK top the list of countries investing in real estate. (Getty)
South Korea now No. 2 foreign investor in US CRE
South Korea now No. 2 foreign investor in US CRE
Stockbridge managing director Terry Fancher (Photos via Stockbridge)
Stockbridge and South Korean firm strike $2B warehouse deal
Stockbridge and South Korean firm strike $2B warehouse deal
The Internal Revenue Service is going after foreign real estate investors as part of a broader sweep to collect revenues amid the pandemic.  (iStock)
“There’s a lot of money to be made”: IRS targets foreign real estate investors
“There’s a lot of money to be made”: IRS targets foreign real estate investors
Qatar is hoping to attract foreign buyers to its housing market,
Qatar entices foreign buyers amid oversupply in housing market
Qatar entices foreign buyers amid oversupply in housing market
Charles Rettig, Commissioner of the IRS (Getty)
Opportunity Zone rule change seeks to entice foreign investors
Opportunity Zone rule change seeks to entice foreign investors
 The Qualtrics Tower at 1201 2nd Avenue in Seattle with Hana Financial CEO Kim Jung-tai and Skanska USA CEO Richard Kennedy (Google Maps)
$700M Seattle office tower buy would be among largest Covid-era property deals
$700M Seattle office tower buy would be among largest Covid-era property deals
The coronavirus has been crushing global real estate investment for months, but there are a couple of sectors weathering the storm (iStock)
Here’s how much Covid has crushed global RE investment
Here’s how much Covid has crushed global RE investment
arrow_forward_ios

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

Loading...