Through a joint venture, the internationally-acclaimed companies will develop a 290-room Hotel Indigo property on the well-situated block-through Lower East Side site
New York, NY – May 20, 2011 – (RealEstateRama) — Brack Capital Real Estate (BCRE), in a joint venture with IHG (InterContinental Hotels Group), has completed the acquisition of 180 Orchard Street on the Lower East Side of Manhattan for approximately $46 million in an all-equity transaction. BCRE will own 51 percent of the shares in the joint venture while IHG will own the remaining 49 percent. IHG’s investment in the project will be up to $30 million. The team plans to develop a multi-use property to include a 290-room Hotel Indigo with retail component and parking.
“This prime development site presents an untapped opportunity to create a project that will benefit neighborhood residents while adding value to the area overall,” said Issac Hera, chief executive officer of Brack Capital Real Estate. “Our strategic relationship has set the stage for many future projects with IHG and we are honored to bring this development site to fruition and offer the community a completed, expertly-managed project that will help this dynamic neighborhood further flourish.”
Scheduled to open in 2013, the Hotel Indigo on Orchard Street will feature soaring ceilings and upper level hotel rooms that will showcase incomparable unobstructed city views. The hotel will include such amenities as a restaurant, bar, state-of-the-art fitness center and outdoor pool. Following the signature Hotel Indigo standards, the project will include inviting guestrooms with oversized beds and hard-surface flooring for a fresh, residential feel, spa-inspired showers with Aveda products, and free wired or wireless high-speed internet access.
Each Hotel Indigo property is uniquely designed to reflect the culture, character and history of the surrounding neighborhood. No two hotels are the same. Brand standards don’t dictate the number or size of rooms, making it ideally suited to conversion properties or independent boutique hotels. The Hotel Indigo Lower East Side will be managed by InterContinental Hotels Group.
“It’s a privilege to be able to foster a strategic relationship with Brack Capital Real Estate as together we will bring a new Hotel Indigo to the New York City market,” said Jim Abrahamson, president, the Americas, IHG. “This joint venture complements our strategy of investing capital into our brands to accelerate their growth. In this case, the Lower East Side of Manhattan is a perfect fit for the Hotel Indigo brand and allows us to continue to work with the right owners to put the right hotel brand in the right location. We look forward to many successful years working together.”
180 Orchard Street is conveniently located just south of Houston Street in the heart of Manhattan’s exciting and vibrant Lower East Side. Known for its creative energy and tight-knit, neighborhood feel, the Lower East Side is a top-rated destination highly regarded for its innovative dining, unique boutiques, diverse entertainment, cutting-edge artistic community, relaxing parks and historic sites. The neighborhood offers easy access to public transportation with a number of subway lines connecting the area to destinations within Manhattan and beyond.
###
For further information please contact:
Investor Relations Catherine Dolton +44 (0) 1895 512 176
Media Relations: Kari Kerr: +44 (0) 1895 512 299 kari.kerr (at) ihg (dot) com
Notes to editor
InterContinental Hotels Group (IHG) [LON:IHG, NYSE:IHG (ADRs)] is a global company operating seven well-known hotel brands including InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express®, Staybridge Suites® and Candlewood Suites® . IHG also manages Priority Club® Rewards, the world’s first and largest hotel loyalty programme with 58 million members worldwide.
IHG is the world’s largest hotel group by number of rooms and IHG franchises, leases, manages or owns, through various subsidiaries, a portfolio of over 4,400 hotels and more than 652,000 guest rooms in 100 countries and territories around the world.
IHG has more than 1,200 hotels in its development pipeline and expects to recruit around 160,000 people worldwide over the next few years.
InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales.
IHG offers information and online reservations for all its hotel brands at http://www.ihg.com/ and information for the Priority Club Rewards programme at http://www.priorityclub.com/. For our latest news visit www.ihg.com/media, Twitter www.twitter.com/ihgplc or YouTube http://www.youtube.com/ihgplc
Brack Capital Real Estate (BCRE) is a worldwide real estate investment and development company with offices in New York, Miami, Tel-Aviv, London, Rome, Beijing, Moscow, Amsterdam, Madrid, Budapest, and New-Delhi. BCRE is active in large scale international real estate investment, development, and M&A activities. In the past 12 years, BCRE has acted as principal in investments of over $8 billion, primarily in the US and UK. During this same period BCRE has been a lead party in financing and refinancing transactions of over $6 billion. As a developer, BCRE has completed the development of three million square feet of office and retail space as well as 3,000 residential units. BCRE’s current portfolio in NY includes the Element at 555 west 59th street, 90 West Street, The Olcott at 27 West 72nd Street, 15 Union Square West, The Greystone Hotel at 91st street and Broadway, The James New York Hotel at 27 Grand Street, 189 Bowery and 218 West 50th Street. For additional information about BCRE, visit http://www.brack-capital.com/.
