Blackstone buying in Manhattan; selling in Spain?

NEW YORK CITY – In yet another signal that rebounding urban hotel assets are back in vogue, private equity giant Blackstone has reportedly agreed to buy from DLJ Real Estate Capital Partners IHG’s 292-room Kimpton Hotel Eventi in Manhattan for $175 million.

At the same time, reports have surfaced that Blackstone is preparing to divest of its 65% stake Spain-based Hotel Investment Partners (HIP), which is worth $6.77 billion, either through a sale or initial public offering. Spanish newspaper Cinco Dias reported the news, citing several unidentified market sources.

HIP owns 73 hotels with 22,000 rooms in Spain, Portugal, Italy and Greece. Blackstone acquired HIP from Banco Sabadell in 2017.

The Kimpton Hotel Eventi is the latest in a series of hotel deals for Blackstone, following recent acquisitions in Florida, including the W Fort Lauderdale and Hyatt Regency Clearwater.

According to Michelle Gelshteyn, managing director at Blackstone, “This transaction reflects our longstanding conviction in New York City and growth in travel. Hotel demand in New York is nearing pre-COVID levels while no new hotel construction permits have been filed in the last three years, creating a compelling backdrop for fundamentals.”

Manhattan hotel performance has been a bright spot for the industry, buoyed by zoning changes that have restrict hotel development.

New York’s average daily rate of more than $440 per room also is nearly three times the national average, according to CoStar data.