Analyzing the InterCon Times Square deal

NEW YORK CITY – Three astute investors are betting on the ongoing recovery in New York City as Highgate, Gencom and Argent Ventures have acquired for approximately $230 million the 607-room InterContinental New York Times Square from a joint venture between Tishman Realty and Metlife Investment Management. The deal was backed by a $190 million loan from Monroe Capital.

The deal will also see the property become a franchise with Highgate taking management from IHG.

Gencom, which also acquired the Thompson Central Park last year, stated its first InterContinental-branded hotel will undergo a comprehensive renovation of guestrooms and public spaces. The hotel currently features approximately 20,000 square feet of flexible meeting space, a signature restaurant, a Shake Shack, and a 24-hour fitness center.

The deal was brokered by Eastdil Secured, representing both the seller on the sale and the buyer on securing the financing.

The market is benefiting from high absolute occupancies and hopes of increasing office utilization and what is effectively a moratorium of new hotel supply across the market. Combined there are real risks across the market but also strong positives, which I believe this pricing (prior to capital expenditures) reflects.

Ryan Meliker

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Analyzing the deal, David McCaslin of CapStar Advisors said, “The New York market has strong enough demand characteristics that help drive interest. The combination of being able to project more favorable interest rates, loan expiration pressure and fund life issues is finally allowing a convergence of market pricing to occur.  This should signal a bit more robust 2026 deal market.”

The deal, first rumored in September, is the second biggest in the city this year with Kam Sang Company’s $235 million October purchase of the Edition Clocktower Hotel being the biggest.

The InterCon opened in 2010 and was refinanced in 2018 with a US$190 million loan from Blackstone Mortgage Trust, public records show.

According to New York City-based President and Co-Founder of Lodging Analytics Research & Consulting Ryan Meliker, the pricing is about $380,000 per room, prior to what he expects is a considerable amount planned capital improvements.

“I believe that reflects the balance of risks and rewards for the market today,” Meliker said. “The risk being a new union labor contract that we expect to drive labor costs up materially, a federal government that is negatively impacting inbound foreign arrivals and a new City administration with many unfriendly business campaign policies (though we don’t know if any will materialize).”

Meanwhile, Meliker added, the market has been one the nation’s outperformers over the past few years and the positive impact from the World Cup is expected to be sizeable in 2026. “The market is benefiting from high absolute occupancies and hopes of increasing office utilization and what is effectively a moratorium of new hotel supply across the market,” he continued. “Combined there are real risks across the market but also strong positives, which I believe this pricing (prior to capital expenditures) reflects.”

Argent Ventures, a vertically integrated real estate investment and development firm, recently acquired and converted the Crowne Plaza Times Square into the Hyatt Regency Times Square, which is also operated by Highgate.

Highgate has been active in the city as well having recently invested in the 1,331-room Row NYC.

In explaining why they liked this deal and asset, Alessandro Colantonio executive vice president and chief investment officer for Gencom told Hotel Investment Today, “The InterContinental New York Times Square represents a strong value-creation opportunity in today’s hospitality market. New York continues to demonstrate exceptional long-term fundamentals, and this asset, given its scale and prime location, is uniquely positioned for elevated performance. Built in 2010, it is one of the city’s newer large-format luxury hotels, offering meaningful and sustainable upside through thoughtful reinvestment.”

In reference to the partnership, Colantonio added, “Gencom is pleased to partner with Argent Ventures and Highgate on this acquisition. We’ve known and admired Highgate for nearly 40 years, and Argent brings deep expertise in the New York market. Together, this partnership creates a dynamic where one plus one truly equals three. With IHG’s strong luxury platform, we see a clear path to strengthening the hotel’s competitive position and unlocking long-term value.”

“Highgate is thrilled to complete another significant investment in New York, and to partner with Gencom and Argent Ventures,” said Zach Berger, principal. “Highgate has invested in New York across multiple cycles and multiple asset classes. It remains committed to fielding a best-in-class operating team in the market and delivering exceptional experiences for our guests and leading results for our partners. We are also excited to continue expanding our activities with IHG, and to lead this new chapter for the InterContinental New York Times Square.”