Hodges Ward Elliott (“HWE”), the world’s leading independent hotel brokerage and investment-banking firm, with offices in New York, Atlanta, Los Angeles and London, announced that it has arranged the previously announced sale of Manhattan’s legendary New York Palace Hotel for $805 million. LOTTE Group, a South Korea-based owner and operator of luxury hotels, has now closed on the acquisition of the 909-room Midtown landmark, which is located on the corner of 50th Street and Madison Avenue, from Northwood Investors.
With this transaction, HWE has now completed $2.86 billion in deals throughout the NYC market since the beginning of 2014. Additionally, the company has also now closed over $4 billion in transactions around the globe in 2015 alone, with approximately 60% of these transactions cross-border. In total, the company has closed over $43 billion in hotel real estate related transactions.
The announcement was made by Mark Elliott, HWE’s President and Partner.
“We are delighted that we could assist in such a monumental transaction for the hotel industry,” said Mr. Elliott. “The New York Palace Hotel is a world-renowned icon that attracts millions of visitors each year thanks to its brilliant blending of architecture, impeccable location in the heart of Midtown and unerring attention to its guests.”
The New York Palace underwent a $160-million redesign in the fall of 2013 that reimagined the hotel’s luxurious rooms and suites in The Towers, a beautifully appointed 176- room hotel-within-a-hotel that features unrivaled, sweeping views of the city. Located on the top 14 floors of the hotel, The Towers provides the personalized service of a boutique hotel complemented by opulent amenities such as spacious marble baths, nightly turndown service and exclusive maître d’etage butlers.
Additional renovations to the New York Palace included new lobbies and specialty suites; 24,000 square feet of refreshed event space; and improvements to a variety of upscale restaurants and cocktail lounges, including Trouble’s Trust, The Lobby Lounge, Tavern on 51, Rarities and Pomme Palais.
The transaction also includes the hotel’s landmarked Villard Mansion, which runs from 50th to 51st Street on Madison Avenue, and was restored concurrently with the adjacent New York Palace. The Mansion’s exteriors, including the façade, roof and windows were restored and brought back to their original splendor. In addition, a full mechanical and electrical upgrade to the interior space brought this historic icon into the 21st Century. The famed property features more than 200 feet of wrap-around frontage, a grand staircase, multiple fireplaces, high ceilings with elegant moldings and a magnificent courtyard.
About Hodges Ward Elliott:
Hodges Ward Elliott, founded in 1975, is the leading independent hotel brokerage and investment-banking firm in the world providing total capital solutions, including hotel sales, recapitalizations and debt placement for its clients.Over the past 5 years, HWE has sold or financed more than $20 billion of hotels and resorts across the U.S. and Europe including more than $4 billion since January 1, 2015. The opening of HWE’s New York office and commercial investment sales practice will expand its service lines to include office, multifamily, retail and land transactions.
About The LOTTE Group:
The LOTTE Group is one of the biggest Korean conglomerates with 79 affiliates and annual revenue of $74 billion in 2013. LOTTE Hotels & Resorts, as a member of the LOTTE Group, is ranked number 1 in the Korean lodging market. Hotel Lotte Co Ltd, an unlisted unit of LOTTE Group, will lead the formation of a new company that will operate the Palace.
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