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
From left: Starwood Capital’s Barry Sternlicht and Veracity Development’s Edmond Li along with 111 Mercer Street (Getty, Google Maps, Veracity Development)
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Starwood's Barry Sternlicht
Starwood wheels and deals to fix $800M loan default
Starwood wheels and deals to fix $800M loan default
Starwood's Barry Sternlicht and Blackstone's Jonathan Gray
Private REITs forced into the spotlight
Private REITs forced into the spotlight
Blackstone’s Steve Schwarzman and Starwood Capital’s Barry Sternlicht (Illustration by The Real Deal with Getty)
Blackstone, Starwood REITs draw SEC’s attention after limiting withdrawals
Blackstone, Starwood REITs draw SEC’s attention after limiting withdrawals
Photo illustration of Blackstone's Jon Gray and Starwood's Barry Sternlicht (Blackstone/YouTube, Getty; Illustration by Kevin Rebong for The Real Deal)
Commercial property fund withdrawals surge
Commercial property fund withdrawals surge
From left: Federal Reserve chair's Jerome Powell and Starwood Capital Group's Barry Sternlicht (Getty)
Barry Sternlicht calls Fed’s actions “suicide”
Barry Sternlicht calls Fed’s actions “suicide”
Joel Schreiber, WeWork’s first investor, under fire on multiple fronts
Joel Schreiber, WeWork’s first investor, under fire on multiple fronts
Joel Schreiber, WeWork’s first investor, under fire on multiple fronts
53 Sonrise Place in Fellsmere, FL and Starwood Capital Group chairman Barry Sternlicht (Google Maps, Illustration by The Real Deal with Getty)
Starwood snaps up Florida affordable housing portfolio
Starwood snaps up Florida affordable housing portfolio
arrow_forward_ios

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

Loading...