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Hilton timeshares arm buys distressed Midtown hotel for $58M

Orlando-based company had previously unveiled operating plan for property

Hilton Grand CEO Mark Wang, 12 East 48th Street and Henry Silverman of 54 Madison Partners (Hilton, Rinaldi, 54 Madison)
Hilton Grand CEO Mark Wang, 12 East 48th Street and Henry Silverman of 54 Madison Partners (Hilton, Rinaldi, 54 Madison)

Timeshare operator Hilton Grand Vacations now owns the site of its planned club dubbed “The Central” in Midtown after buying the distressed property from the development’s lender for $58 million.

The Orlando-based company, which was spun out from parent company Hilton in 2017, bought the 161-room hotel at 12 East 48th Street from 54 Madison Partners, property records filed with the city Thursday show.

The purchase price was $58.4 million for the newly constructed hotel, which the company is operating as a timeshare.

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Hilton Grand had been working on its timeshare plans with the original developer of the hotel, Hidrock Properties. But Henry Silverman’s 54 Madison Partners, the mezzanine lender on the project, foreclosed on it.

“The Central at 5th has been constructed from the ground up to serve as an ideal base for our owners and guests to experience the best of Manhattan,” Hilton Grand Vacations CEO Mark Wang said in an announcement this month on the opening of the new club.

Representatives for Hilton Grand Vacations and 54 Madison Partners, an affiliate of Jefferies Financial Group, could not be immediately reached for comment on the sale.

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Distressed Properties