The real estate giant is bulking up in Manhattan while
reports surface of plans to divest of 22,000 rooms 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.