One Edition in New York wasn't enough. Marriott International has announced it will open a second Edition-branded hotel in Times Square to complement one already in development at the Clock Tower building near Madison Square Park with an expected opening date of 2015.
Marriott will operate the 452-room hotel to be built at 701 Seventh Ave., according to a statement yesterday by Winthrop Realty Trust, a Boston-based real estate investment company that’s part of the ownership group. Bloomberg reports that Winthrop bought the site in 2012 in partnership with New York-based Witkoff Group and New Valley LLC.
The hotel will have 30,000 square feet of food, beverage and entertainment space and construction is expected to be completed in 2017.
“New York is one of the most important destinations in the world, and we are delighted to have secured yet another iconic Manhattan location for our second Edition hotel in the city,” Arne Sorenson, Marriott’s president and CEO said.
(Meanwhile, not everyone thinks the outlook is bright for the Edition brand.)
THE NUMBERS AND LOAN
The refinancing agreement on the Times Square site includes a new $237.5-million mortgage and $315-million mezzanine loan. Winthrop contributed an additional $32.5 million of equity to the deal, bringing its capital contributions to $85.9 million, the company said.
Further, in case of a loan default, Marriott agreed to purchase the hotel portion of the property for $314.6 million during the first two years after opening, Winthrop said.
Barry Sternlicht’s Starwood Property Trust Inc. and iStar Financial Inc. provided a $815-million construction loan for the project, according to the statement from Marriott and Witkoff Group.
The announcement of a new Edition comes a week after another announcement that Marriott had sold its London Edition property and signed binding agreements for the sale of two other company-owned Edition hotels currently under development in Miami Beach and Manhattan.
The total purchase price for the three hotels is approximately $815 million, roughly equal to the aggregate estimated total development costs of all three hotels.
Over the next two years, Edition hotels are slated to open in Miami Beach, Bangkok, Abu Dhabi, India and China.