An affiliate of Hyatt Hotels Corporation has sold New York City’s Andaz 5th Avenue Hotel to Japan’s Takenaka Corporation (TAK Development, Inc.). The selling price was reported at $215.2 million, or almost $1.2 million per room. Both parties handled the direct sale in-house.
The acquisition marks Takenaka's entry into the New York City hospitality market, though it owns several other New York assets as well as hotel properties across the globe, including a Hyatt hotel in Hawaii.
Hyatt will continue to manage the hotel under its Andaz brand, pursuant to a long-term management agreement with the new owner. As of July 2016, the hotel is reported to be operating at near full occupancy with rates in the $500 range, placing it in-line with comparable area properties.
The 14-story hotel was originally constructed as the last Rogers Peet & Co. department store, and housed Tommy Hilfiger's global headquarters before opening as the second Andaz property in New York in late 2010.
According to Hyatt's website, there are currently 17 Andaz properties wither open or under development.