Posted 8/20/2012 - 12:02:10 AM
NEW YORK—Strategic Hotels & Resorts plans to acquire the 518-room Jumeirah Essex House Hotel on Central Park South, here, for $362.3 million.
The Chicago-based REIT acquired the iconic hotel from the Dubai Investment Group. Strategic has signed a 50-year management agreement with Marriott International to operate the hotel as the JW Marriott Essex House Hotel New York.
The deal is scheduled to close next month. Strategic plans to invest $18.3 million in CapEx improvements, following the closing.
An affiliate of Strategic owned the hotel in the early-2000s, selling it to the Dubai Investment Group in 2005 for $440 million. The change of flags is a set back or Dubai-based Jumeirah, which has been trying to build a presence in the key U.S. market. Meanwhile, the change is a boon to Marriott's luxury JW Marriott, which has not had a flag in New York since it had the former Righa (now London New York) Hotel in its portfolio.