Jones Lang LaSalle Hotels arranges New York asset sale to RFR Holding
NEW YORK, NY – October 28, 2011 – (RealEstateRama) — One of the largest U.S. hotel investment sales conducted this year shows investor confidence and a healthy competitive appetite still exist for core product in major hotel markets, as evidenced with the closing of the Paramount Hotel in Manhattan. Jones Lang LaSalle Hotels completed the transaction on behalf of Walton Street Capital and Highgate Holdings and sold the 597-room property to RFR Holding.
As one of the most distinguished hotels in Manhattan, the sale of the Paramount Hotel ranks among the 10 largest single-asset hotel transactions to close across the globe so far this year; five of the assets on the global top 10 list are New York properties.
Jones Lang LaSalle Hotels’ full-service experts Managing Director Jeffrey Davis and Senior Vice President Gilda Perez-Alvarado led the competitive transaction to completion.
“Investors continue to be drawn to high quality assets in New York and this deal demonstrates that there seems to be little shortage of equity capital available to capture high-quality hotels,” said Davis. “Private equity investors have a strong appetite for hotels in core markets like New York City and that is fuelling greater competitive pressure within the market.”
“The acquisition of the Paramount Hotel also provides RFR Holding with a rare opportunity to penetrate the New York market and expand its portfolio,” added Davis.
New York’s lodging market is the top performing market in the United States, and the second strongest in the world. The Times Square submarket has achieved an 8.6 percent increase in average daily rates in year-to-date through September 2011, according to Smith Travel Research. “Manhattan is one of the fastest recovering markets in the U.S. coming out of the recent downturn,” said Perez-Alvarado. “The city remains a top pick for both domestic and international investors.”
About Jones Lang LaSalle Hotels
Jones Lang LaSalle Hotels, the first and leading global hotel investment services firm, is uniquely positioned to provide the depth and breadth of advice required by hotel investor and operator clients, through a robust and integrated local network. In 2010, Jones Lang LaSalle Hotels provided sale, purchase and financing advice on $4.1 billion worth of transactions globally. In addition, advisory and valuation services were provided on over 1,000 assignments. The global team comprises over 210 hotel specialists, operating from 37 offices in 19 countries. The firm’s advice is supported by a dedicated global research team, which produced 70 publications in 2010 in addition to client research. Jones Lang LaSalle Hotels’ services span the hospitality spectrum; from luxury single assets and large portfolios to select service and budget hotels, resorts and pubs. Services include investment sales, mergers and acquisitions, capital raising, valuation and appraisal, asset management, strategic planning, operator selection, management contract negotiation, consulting, industry research and project development services. Jones Lang LaSalle Hotels’ clients have access to the resources of its parent company, Jones Lang LaSalle (NYSE: JLL). www.joneslanglasallehotels.com.
Contact:
Kristina Paider
Phone: +1 312 498 5807
Email: Kristina.Paider (at) am.jll (dot) com
Katie Sershon
+1 312 228 3127
Katie.Sershon (at) am.jll (dot) com
