Westbrook Partners has secured a $100 million loan to fund its purchase of the W New York Union Square hotel.
HSBC is providing the loan for the 20-story building at 201 Park Avenue, according to Commercial Observer. The loan amount will cover 60 percent of the $165.5 million Westbrook paid for the building. The Real Deal reported when the company was close to signing a hard contract in May.
Westbrook paid $20 million less than what its previous owner Host Hotels & Resorts paid in 2010. The 205,000-square-foot Beaux-Arts building was built in 1911 and is occupied by 270 rooms. Under Westbrook, the hotel will lose its W Hotels flag, leaving only two remaining W-branded hotels in the city: Times Square, at 1567 Broadway, and Downtown, at 8 Albany Street.
Earlier this year Capstone Equities and Highgate closed on the $190 million purchase of the W on Lexington Avenue, which they renamed the Maxwell. [CO] — David Jeans