The Miami-based developer has acquired the Thompson Central
Park and continues to grow its partnership with Hyatt.
NEW YORK CITY – After years of bidding, luxury
owner-operator Gencom can finally put a pin on the map in New York City as the
Miami developer has acquired the 587-key Thompson Central Park Hotel from GFI
Capital Resource Group and Elliott Management Corp. for a reported $308 million The sellers paid $420 million for the asset in 2020.
A $230 million acquisition loan was secured through
affiliates of Ramsfield Hospitality Finance, Affinius Capital and AB CarVal.
Eastdil Secured, a global real estate investment bank, represented the seller
as well as Gencom in arranging the acquisition financing.
The hotel, which recently went through a $100 million renovation, is currently operated by Hyatt and will continue
under its Thompson branding. Gencom and Hyatt share a strong partnership, also
collaborating on the planned redevelopment of Downtown Miami's Hyatt Regency
and the acquisition and renovation of the Andaz Costa Rica Resort at Peninsula
Papagayo.
“It’s a market we’ve chased for many years, and it’s just
never been the right mix of timing, opportunity and process,” Gencom’s Chief
Investment Officer Alessandro Colantonio told Hotel Investment Today. “On this
one, while it was pretty heavily marketed through Eastdil, we were able to win
out frankly due to our track record. Our relationship with Hyatt, in particular,
factored into this as they are very motivated to align with a long-term
partner. So, we were excited to get into this market.”
In a market already delivering frothy rates, Colantonio thinks
plenty of runway for revenue growth remains. “I feel like we’re in the third or
fourth inning of New York’s recovery on the hospitality side,” he said. “It’s still
not back to pre-pandemic levels that we expect to reach in the next 12 to 18
months. At the same time, Airbnb is, for the most part, out of the competitive
landscape for hotels, and we think that’s here to stay.”
Colantonio added that there is not a lot of new supply
coming back online in New York anytime soon and he believes that the market is
at an interesting inflection point of continued demand growth and lack of new
supply. “Frankly, the opportunity to buy an asset of this caliber, at this
location, and at this basis was something that doesn’t come along too often for
a market like New York,” he added. “So, I think we’re still in the early
recovery stage here in New York from a hospitality standpoint.”
It’s still not back to pre-pandemic levels that we expect to reach in the next 12 to 18 months. At the same time, Airbnb is, for the most part, out of the competitive landscape for hotels, and we think that’s here to stay.
Alessandro Colantonio
What Colantonio also likes about the deal is the halo effect
Gencom gets by having a New York City address in its portfolio. “There are
certain deals where it always has to make economic sense, but there’s also the
halo effect here,” he said. “If I’m putting dots on a map here as chief investment
officer, and where we want to be diversified, New York has been at the top of
our list. It’s incredibly important. It’s a major market. We do a lot of
business in the city. A lot of our partners are in the city. So, it’s almost
like having a home base in New York. But to be a part of the continuing growth
of the New York market – it means a lot and it’s a continuation of us looking
for high quality assets in major markets.”
Situated on Manhattan’s famed Billionaires’ Row, the
42-story property underwent a comprehensive renovation and reopened in 2021. It
now features 4,500 square feet of meeting space, a variety of dining concepts,
and a 6,500-square-foot Exhale spa and fitness center set to open later this
year. The hotel is also home to Parker’s burger joint, known for its live music
and craft cocktails, and Indian Accent, an upscale dining experience by Chef
Manish Mehrotra.
The acquisition also marks the first addition of a Thompson
Hotels-branded hotel to Gencom’s portfolio, which includes properties from
luxury brands The Ritz-Carlton, Four Seasons Hotels and Resorts, St. Regis,
Rosewood, Fairmont, and Auberge Resorts. The Thompson Hotels portfolio of
luxury lifestyle hotels currently includes The Beekman, Gild Hall and Thompson
Central Park New York in New York City.
Today, the Gencom portfolio is comprised of nearly $8
billion in assets under management and includes 23 owned assets in operation or
under development with over 7,000 hotel rooms around the world; in addition to
240 properties spanning over 40 locations, comprised of 50,000 keys through its
third-party management affiliate, Pyramid Global Hospitality.