Hawkins Way Capital Acquires World’s Tallest Holiday Inn

News Summary

Hawkins Way Capital has acquired the tallest Holiday Inn in the world for $155 million in Manhattan’s Financial District. The 50-story hotel includes 492 rooms and an adjacent restaurant. IHG will no longer manage the property, which has seen financial distress prior to the sale. As the hotel transitions to new management under FCL Management, plans for renovation and property revitalization are anticipated amidst ongoing local developments around housing for migrants.

New York City—Hawkins Way Capital, a real estate firm based in Los Angeles, has acquired the world’s tallest Holiday Inn for $155 million. The hotel, located at 99 Washington St. in Manhattan’s Financial District, boasts 50 stories and 492 rooms. This acquisition also includes the adjacent St. George Tavern restaurant, which spans 8,500 square feet.

The previous owner of the property, GF Hotels and Resorts from Philadelphia, sold the hotel through a company called Golden Seahorse. The deed for the sale was signed by Jeffrey Kolessar, the Chief Development Officer of GF Hotels. However, he did not comment further on the transaction.

Hawkins Way Capital plans to strategically reposition the property following its acquisition. This shift marks a significant transition as IHG, the management company for the Holiday Inn brand, will no longer operate the hotel. Consequently, this change will result in the property losing its title as the tallest Holiday Inn in the world. The management of the hotel will now be taken over by FCL Management, another hospitality company based in Los Angeles.

This hotel was developed in 2014 by Chinese developer Jubao Xie and hotelier Sam Chang. Originally, Xie sought to sell the property in 2017 for over $300 million. However, he later decided to refinance the mortgage instead due to market conditions.

Amid this acquisition, there are significant ongoing developments in local governance. New York City Mayor Eric Adams has announced the planned closure of 13 migrant shelters, including the Holiday Inn at 99 Washington St. This decision is part of the city’s broader strategy to manage the ongoing migrant crisis. The implications of this planning are being discussed among local residents and officials, with a focus on housing options for homeless individuals and potential impacts on community safety and resource allocation.

Prior to this acquisition, the hotel’s financial situation appeared precarious. Reports indicate that it had been in distress and faced foreclosure risks before undergoing restructuring in 2023, which included a contract with the city for housing migrants. Such circumstances undoubtedly influenced Hawkins Way Capital’s decision to acquire the property, signaling possible opportunities for revitalization and financial turnaround.

Hawkins Way Capital has a track record in the hospitality industry, having previously sold four timeshare condominium units at 569 Lexington Ave. for $85.7 million to the City University of New York. The firm had also purchased a former DoubleTree by Hilton for $146 million from RLJ Lodging Trust in 2022, which was significantly lower than RLJ’s 2010 purchase price of approximately $332 million.

The future plans for the Holiday Inn after its acquisition will depend on various factors, including necessary renovations, financial strategies, and potential branding decisions, as the new ownership explores ways to revitalize the property. As Hawkins Way Capital moves forward, the company aims to ensure sustainable operations while navigating the complexities of the New York City hospitality market.

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Additional Resources

• Crain’s New York: Hawkins Way Capital Buys FiDi Holiday Inn
• Wikipedia: Migrant Shelters in New York City
• 6sqft: More NYC Migrant Shelters to Close
• Google Search: Migrant Shelters New York City
• ABC7: Mayor Eric Adams Announces Closure of 13 Migrant Shelters
• Encyclopedia Britannica: Hotel