Affiliates of Paceline Equity Partners have acquired the Home2 Suites by Hilton New York Long Island City, an extended-stay, all-suite hotel located in Long Island City, N.Y. According to records, the seller was LIC Hotel Properties, an affiliate of RadSon Development. Other terms were not disclosed. The recently renovated hotel is one of only three Hilton-branded extended stay properties in New York City.
The acquisition represents Paceline’s second strategic partnership with Highline Hospitality Partners, following Paceline’s acquisition of the Sheraton Suites Atlanta Galleria, which was announced in June 2022.
“The Home2 Suites represents our first hospitality investment in New York City, and the tenth hotel in our portfolio," Paceline CEO Sam Loughlin said in a statement. "The hotel has capitalized on the strong leisure and business travel in the Long Island City submarket as the neighborhood has developed, highlighting the area’s strong recovery from the pandemic and diverse economic tailwinds."
The 115-key Home2 Suites in Long Island City was developed in 2014. Originally an industrial neighborhood, Long Island City was rezoned to residential and commercial use in 2001 and has since experienced rapid development. The ongoing development of Long Island City is expected to continue to drive leisure and corporate demand to the submarket, according to Paceline.
“The transaction’s favorable tax abatement and assumable, fixed rate financing provide attractive cash on cash yields relative to the current tax and debt structures which are available in the market,” said Leigh Sansone, chief investment officer of Paceline. “Paceline’s acquisition of the Home2 Suites by Hilton New York Long Island City highlights our ability to leverage our existing operating partner relationships and to identify attractive opportunities across all market environments.”
This acquisition follows Paceline's recent purchase of the Renaissance Dallas at Plano Legacy West Hotel, a full-service property located in Dallas' Legacy West development.