Here’s how much Westgate paid for the Hilton at Grand Central

Company known for timeshare business plans to rename 300-key hotel

New York /
Jun.June 07, 2018 06:12 PM

Westgate Resorts CEO David Alan Siegel and the Hilton New York Grand Central at 304 East 42nd Street (Credit: Youtube and Hilton)

Westgate Resorts has purchased the former site of the Hilton New York Grand Central for $50 million, according to sources familiar with the deal.

The firm announced on Wednesday that it had acquired the 300-key hotel at 304 East 42nd Street, with plans to rebrand it as Westgate New York City. This marks the first urban hotel in the company’s portfolio, according to Westgate CEO David Siegel.

The 23-story, two-tower hotel opened in 1931 and was known as the Hotel Tudor and Hilton Manhattan East before being branded the Hilton New York Grand Central. Westgate plans to make extensive renovations to the property, but it will continue operating it as a hotel.

Cushman & Wakefield’s Tom McConnell, Jared Kelso, Steve Michels, John Basting and Nikita Bernstein brokered the deal on behalf of the seller, listed in records as Tudor Equity Associates LP, connected to Lone Star Funds.

Westgate has been a player in the timeshare industry for decades but has recently started focusing more on hotels.

The hotel hit the market in October, and bids were expected to reach $75 million.  Rhode Island-based Procaccianti Group reportedly paid $109 million for the hotel in 2007, before the recession hit.

Manhattan has seen tens of thousands of new hotel rooms in recent years, and average daily room rates just rose for the first time since 2014 in the first quarter of the year, according to PricewaterhouseCoopers. Supply went up during the first three months by just 2.8 percent, the lowest increase since the beginning of 2015.


Related Articles

arrow_forward_ios
(Getty, Photo Illustration by The Real Deal)
Retail had its reckoning. Will subleases flood the market?
Retail had its reckoning. Will subleases flood the market?
Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
Ascena restructuring approved post-bankruptcy
Ascena restructuring approved post-bankruptcy
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
Craft retailer Michaels to go private in $5B deal
Craft retailer Michaels to go private in $5B deal
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)
JLL gets in rental home business
JLL gets in rental home business
Mack-Cali Realty CEO Mahbod Nia and MaryAnne Gilmartin (Photos via Mack-Cali Realty)
Mack-Cali Realty names Mahbod Nia as CEO
Mack-Cali Realty names Mahbod Nia as CEO
The comedy club argues that if SNL can operate, then they should be allowed to operate too. (Getty)
Manhattan comedy club sues Cuomo over pandemic closures
Manhattan comedy club sues Cuomo over pandemic closures
(iStock)
These were Manhattan’s best office submarkets in Q4
These were Manhattan’s best office submarkets in Q4
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Order up: Real estate investors line up to buy drive-throughs
Order up: Real estate investors line up to buy drive-throughs
arrow_forward_ios

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

Loading...