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Capstone in contract on W Hotel for $190M
Company previously rumored to be in talks for $209M
Host Hotels & Resorts, a publicly traded hospitality company, is in contract to sell the W Hotel New York at 541 Lexington Avenue for $190 million.
The sale announcement, which was included in the company’s fourth quarter earnings report, did not mention the buyer, but a source familiar told The Real Deal it was Capstone Equities.
Last month, Real Estate Alert reported that Capstone and a partner, HEI Hotels, were in talks to acquire the hotel for $209 million. A source with close knowledge of the deal said that Capstone opted to partner with Highgate for the purchase instead. It’s not clear if Highgate, which frequently serves as a third-party manager of hotels, will have any equity in the partnership.
Representatives for Capstone, Host, Highgate and HEI did not immediately respond to requests for comment. Eastdil Secured, which is brokering the deal, declined to comment.
The 697-key hotel was previously eyed for redevelopment in potential rezoning of Midtown East that passed City Council last year, Bloomberg reported.
Last year, Capstone and Highgate partnered to buy the 171-room Nyma Hotel in Koreatown.