A commercial real estate property in New York City was recently acquired by Strategic Hotels & Resorts for $362.3 million.
The Essex House Hotel was acquired from the Dubai Investment Group. It contains more than 509 hotel rooms, as well as nine condominium units. In addition, it has 40 floors and was last renovated in 2007. Strategic Hotels will close its sale with Dubai Investment Group in early September.
The hotel will be managed by Marriott International, as the new owners signed a 50-year agreement with the company. Due to it's new management, the hotel will be renamed as JW Marriott Essex House New York.
"We're delighted to have been chosen by our valued partners at Strategic Hotels & Resorts to manage the iconic Essex House Hotel on Central Park South, making it the home of our first JW Marriott hotel in New York City," said Arne Sorenson, president and chief executive officer of Marriott International.
The deal included a $21.5 million operating income guarantee by Marriott for each of the next eight years.