News Summary
Magna Hospitality has completed the largest hotel portfolio sale in New York City, involving four Hilton-branded properties for a total of $489.8 million. This significant transaction marks a pivotal moment for the city’s hotel industry, especially after the controversial Safe Hotels Act. The portfolio includes 1,129 rooms across well-known locations such as Hilton Garden Inn and DoubleTree, highlighting renewed investor confidence in a challenging regulatory environment.
New York City Sees Largest Hotel Portfolio Sale in 2025
Magna Hospitality, a firm based in Warwick, Rhode Island, has completed a significant transaction involving the sale of four Hilton-branded hotels in New York City. The total price for the portfolio reached $489.8 million, marking it as the largest hotel portfolio deal in the city for 2025. The buyers of the properties are undisclosed “large institutional owners,” indicating a strategic investment in New York’s vibrant hotel market.
The portfolio consists of a total of 1,129 rooms across four properties. Included in the sale are:
– Hilton Garden Inn New York Times Square North: 196 keys, sold for $115.5 million
– DoubleTree by Hilton New York Times Square South: 320 keys, sold for $99.7 million
– Fairfield Inn & Suites New York Midtown Manhattan: 239 keys, sold for $52.2 million
– Motto by Hilton New York City Chelsea: 374 keys, sold for $222.1 million
The transaction was facilitated by JLL (Jones Lang LaSalle), a renowned global commercial real estate services firm. Notably, Magna Hospitality used funds from its Magna Hotel Fund VI, which successfully raised $250 million in 2018, to finance the sale.
While Magna Hospitality has parted with over 90% of its equity in this deal, the company will retain a partial ownership stake in the four properties, although the exact percentage is undisclosed. Additionally, four lenders were involved in financing the transaction, further indicating the interest and investment in the New York City hotel market.
This sale comes at a pivotal moment following the passage of the controversial Safe Hotels Act by the city council last year. This act has drawn considerable attention regarding the regulation of hotels and their operations, emphasizing the significance of the portfolio sale as a signal of ongoing confidence in the sector.
Despite this substantial transaction, Magna Hospitality continues to maintain a presence in New York City. The company still owns multiple hotels, including a Hilton near Times Square that was acquired from developer Sam Chang in 2023 for approximately $160 million, as well as an Embassy Suites on 37th Street purchased in 2020 for around $115 million.
The scale of this transaction has been highlighted as a positive indicator for New York City’s hotel industry. Though the current deal volume is low relative to previous years, the successful sale reflects potential stability and growth within the market, as evidenced by the remarks made by industry experts in light of this significant portfolio sale.
In conclusion, the successful transaction by Magna Hospitality not only underscores the firm’s strategic positioning but also signals an optimistic outlook for the New York City hotel landscape amidst a challenging regulatory environment. As the industry adapts to changing regulations, this sale may serve as a catalyst for future investment and revitalization in the market.
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Additional Resources
- Hotel Investment Today: Magna Sells 4 NYC Hotels for Nearly $500 Million
- Wikipedia: New York City
- Bloomberg: InterContinental Times Square Near Sale for $230 Million
- Google Search: New York City Hotel Sales
- Boutique Hotelier: New York Hotel with Ties to Bob Dylan Sells for $23M
- Google Scholar: New York City Hotel Market
- New York Times: Lutnick and the Pierre Hotel
- Encyclopedia Britannica: Hotels
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