$216M refi for Westin in New York City

NEW YORK CITY — A joint venture between Boston-based Bain Capital and New York City-based Smith Hill Capital has secured a $216 million refinance for the owner of the 774-key Westin New York Grand Central Hotel in New York City.

While the owner was not named in the news release, in 2019, New York City-based Davidson Kempner Capital Management was reported to have purchased the hotel for $302 million from Host Hotels & Resorts. The hotel underwent extensive renovations in 2021.

In 2023, Bain Capital Special Situations and Procaccianti Companies affiliate Smith Hill Capital formed a joint venture to originate debt and preferred equity to serve the hospitality sector with the objective of deploying $1 billion of gross capital over the next several years. The JV focuses on serving the financing needs of hospitality companies and assets in demand-driven markets across the U.S.

The Westin New York Grand Central features 18,750 sq. ft. of flexible meeting and event space, a full-service restaurant, as well as a fitness center and valet parking.  JLL represented the sponsors in the transaction.

“The Westin Grand Central is a flagship property in one of the world’s most dynamic lodging markets. Its proximity to Grand Central Terminal and Midtown’s largest employers makes it a cornerstone asset for both business and leisure travel,” Brendan McCormick, managing principal, Smith Hill Capital, said in the news release. “Together with Bain Capital, we continue to pursue opportunities in premier urban markets as well as high-quality destination markets where we see consistent demand and long-term value creation potential.”

"This transaction further demonstrates our ability to provide flexible and creative capital solutions for high-quality assets and borrowers,” said David DesPrez, partner at Bain Capital.

"We’re proud to have facilitated this successful refinancing, marking another milestone in our long-standing relationship with this exceptional asset,” said Kevin Davis, Americas CEO of JLL’s Hotels & Hospitality Group. “This transaction not only provides our client with enhanced financial flexibility but also demonstrates the continued investor confidence in premier Manhattan hospitality assets.”