NEW YORK—Hidrock Realty and Robert Finvarb Companies have closed on the sale of the SpringHill Suites New York Midtown Manhattan/Fifth Ave. KSG Enterprises Ltd., a subsidiary of Keck Seng (Malaysia) Berhad, acquired the hotel for $82 million.
The 19-story, 173-key hotel at 25 West 37 St. was developed from the ground up by Hidrock and Robert Finvarb Companies. The hotel opened in May 2013. It features a breakfast room, business center, fitness center and nearly 300 sq. ft. of ground-floor retail.
Managing Director Jeffrey Davis and EVP Gilda Perez-Alvarado of JLL’s Hotel & Hospitality Group led the JLL team on the transaction. Senior Director of Hotel Management Michael Powlen and CFO Daniela Trudel handled the transaction on behalf of ownership.
“KSG seized an excellent opportunity to acquire this recently constructed asset at a strong yield and has strategically expanded [its]presence in the United States,” stated Davis. “SpringHill Suites benefits from its premiere brand recognition and benefits from Marriott’s best-in-class management.”
“After 22 months of construction, we opened the SpringHill Suites just over a year ago and were extremely impressed with its performance. The hotel ramped up very quickly and was number one in its competitive set for the average daily rate within five months,” added Powlen. “The strong partnership between Hidrock, Robert Finvarb Companies and Marriott really worked to make this property a success.”