"We are very pleased to acquire the remaining interest in the JW Marriott Essex House hotel from our partner, KSL," commented Raymond L. "Rip" Gellein, chairman and chief executive officer of Strategic Hotels & Resorts. "Under our joint ownership we created substantial incremental value, with EBITDA projected to have increased over six times by the end of 2015. There continues to be significant upside in this iconic hotel, which is situated on Central Park. The New York City market is long-term one of the most outstanding travel markets in the world, and we are confident that our efforts to reposition the hotel will drive favorable future growth. This transaction also represents the acquisition of the sole remaining joint venture interest in our best-in-class portfolio of hotels and resorts, further simplifying our balance sheet."
The net hotel purchase represents an approximately $757,000 per-key valuation. The acquired 49-percent interest in the hotel is projected to generate an incremental approximately $5.5 million of EBITDA in the remaining five months of 2015.
About the property
Towering 40 floors and offering commanding views of Central Park, Essex House is among the most luxurious and recognized hotels in Manhattan. Quintessentially New York, the Hotel has played host to world dignitaries and celebrities alike since opening in 1931. The building underwent a comprehensive $90 million renovation in 2007. Today, the Hotel features world-class amenities including a full-service spa and fitness center, a fine-dining restaurant and well-appointed meeting and event spaces. The 514 guestrooms offer stylish furnishings that celebrate the property's rich history while offering guests all the comforts of a luxury hotel.