Starwood Capital looks to sell all three 1 Hotels properties

Portfolio, which sources value at $800M, includes Central Park and as-yet-incomplete BK Bridge Park hotels

New York /
Jun.June 23, 2016 06:00 PM

Barry Sternlicht’s Starwood Capital Group is looking to sell all three hotels in its fledgling “eco-luxury” brand 1 Hotels, including two in New York City, sources told The Real Deal.

The development firm could sell the hotels as one package or piecemeal, and sources familiar with the marketing process expect them to fetch north of $800 million.

The hotel brand launched last year with the opening of the Miami Beach flagship. Starwood then set its sights on New York.

The 1 Hotel Central Park, which is an 18-story, 229-key property, opened at 1414 Sixth Avenue in August. Starwood secured a $125 million refinancing for it shortly after. The 10-story, 194-key 1 Hotel Brooklyn Bridge is slated to open later this year at the Pierhouse complex in Brooklyn Heights.

Earlier this month, The Real Deal reported that 1 Hotel South Beach was being marketed. Sources expect that building – an 18-story, 426-key hotel in Miami Beach – to sell for $1 million per room, sources said.

Sources peg the Central Park hotel to fetch north of $1 million per room, and the Brooklyn Bridge Park hotel to fetch about $800,000 per room.

Hodges Ward Elliott is marketing all three hotels for sale, sources said.

Amid the boom in supply of New York City hotels, Starwood selling new-construction projects allows the firm to capitalize on the market and focus on third-party management, sources said.

“If they wait three or four years before selling, they could run into fund-life issues,” said an investment sales broker not involved in the deal.

Representatives for Starwood and HWE declined to comment. Starwood also recently listed a large portfolio of U.S. malls valued at $1.2 billion.


Related Articles

arrow_forward_ios
Starwood Property Trust's Barry Sternlicht (Getty, iStock)
“Good luck finding people”: Sternlicht warns of labor shortage for infrastructure bill
“Good luck finding people”: Sternlicht warns of labor shortage for infrastructure bill
Sam Zell (left) and Barry Sternlicht (Photos by Studio Scrivo and Emily Assiran)
Battle of Monmouth: Zell and Sternlicht’s $2B struggle over warehouse REIT
Battle of Monmouth: Zell and Sternlicht’s $2B struggle over warehouse REIT
Starwood Property Trust CEO Barry Sternlicht (Getty, iStock)
Washington is “putting kerosene on an open fire” with spending bills: Sternlicht
Washington is “putting kerosene on an open fire” with spending bills: Sternlicht
Blackstone CEO Stephen Schwarzman and Starwood CEO Barry Sternlicht (Getty)
Here’s an inside look at Extended Stay’s 62K-key portfolio
Here’s an inside look at Extended Stay’s 62K-key portfolio
Starwood CEO Barry Sternlicht and Blackstone CEO Stephen Schwarzman (Getty)
Blackstone, Starwood up bid for Extended Stay America
Blackstone, Starwood up bid for Extended Stay America
Starwood Capital CEO Barry Sternlicht and HFZ Capital chairman Ziel Feldman with the Chatsworth at 344 West 72nd Street and (Getty, Google Maps)
Starwood takes control of 21 units at HFZ’s Chatsworth
Starwood takes control of 21 units at HFZ’s Chatsworth
Barry Sternlicht (Getty, iStock)
Real estate is a “four-letter word” in the capital markets: Sternlicht
Real estate is a “four-letter word” in the capital markets: Sternlicht
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
arrow_forward_ios

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

Loading...