Maefield acquires Doubletree Times Square stake for $540M

Deal for hotel at 1568 Broadway valued at just over $1.15 million per key

Doubletree Times Square
1568 Broadway in Times Square

Maefield Development acquired the leasehold interest in the Doubletree Guest Suites Times Square hotel from Sunstone Hotel Investors for a purchase price of $540 million.

The deal for the 468-room hotel at 1568 Broadway is valued at just over $1.15 million per key, with Maefield announcing a “planned redevelopment of the property into a premier cultural entertainment, retail and hospitality experience” in the middle of Times Square.

That redevelopment would include a renovation of the hotel, as well as street-front retail and entertainment space and a new “super-high-resolution” LED screen on the building’s facade, Indianapolis-based Maefield said, as well as the restoration of the historic Palace Theatre at the site.

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Howard Michaels‘ Carlton Group advised Maefield on the financing of the acquisition. Maefield is also a stakeholder in the 20 Times Square hotel, retail and entertainment development located across the street from 1568 Broadway.

Sunstone – a California-based real estate investment trust that has interests in 29 hotels comprised of nearly 14,000 rooms across the country – said the sale represents more than 25 times the Doubletree’s forecasted adjusted EBITDA of $21.3 million for 2015, as well as a 3.4 percent capitalization rate on forecasted 2015 net operating income.

The REIT acquired its interest in the hotel property from a partnership led by Goldman Sachs unit Whitehall for $286 million in January 2011. – Rey Mashayekhi