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KSG Enterprises Ltd. acquires only SpringHill Suites-branded hotel in Manhattan
NEW YORK, July 31, 2014 – Manhattan’s lodging transaction volume is anticipated to reach up to $2.8 billion in 2014 and all signs show that investors continue to place their confidence and capital in the market. On behalf of Hidrock Realty and Robert Finvarb Companies, JLL’s Hotel & Hospitality Group today announced the closing of the SpringHill Suites New York Midtown Manhattan / Fifth Avenue. KSG Enterprises Ltd., a subsidiary of Keck Seng (Malaysia) Berhad, acquired the Hotel for $82 million.
Managing Director Jeffrey Davis and Executive Vice President Gilda Perez-Alvarado led the JLL team on the transaction. Senior Director of Hotel Management Michael Powlen and Chief Financial Officer Daniela Trudel handled the transaction on behalf of ownership.
“KSG seized an excellent opportunity to acquire this recently constructed asset at a strong yield and has strategically expanded their presence in the United States,” said Davis. “SpringHill Suites benefits from its premiere brand recognition and benefits from Marriott’s best-in-class management.”
“After 22 months of construction, we opened the SpringHill Suites just over a year ago and were extremely impressed with its performance. The hotel ramped up very quickly and was number one in its competitive set for the average daily rate within five months,” said Powlen. “The strong partnership between Hidrock, Robert Finvarb Companies and Marriott really worked to make this property a success.”
The 19-story, 173-key hotel is located at 25 West 37 Street and was developed from the ground up by Hidrock and Robert Finvarb Companies. The hotel opened in May 2013 and achieved 90 percent occupancy almost immediately. It features a contemporarily-designed breakfast room, a fully-equipped business center, a fitness center and nearly 300 square-feet of ground floor retail. The property is strategically located in the heart of Midtown Manhattan, near Times Square, Grand Central and Herald Square, and is proximate to more than 280 million square-feet of office properties, numerous cultural attractions, and globally-renowned shopping, dining and entertainment venues.
JLL’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm’s 300 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US $36 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
For more news, videos and research from JLL’s Hotels & Hospitality Group, please visit: www.jll.com/hospitality or download the Hotels & Hospitality Group’s iPhone app or iPad app from the App Store.
About Hidrock RealtyHidrock Realty is a private real estate firm with properties throughout the East Coast. Based in Manhattan, the company provides fully integrated real estate services including acquisitions, asset management, leasing and development. Hidrock ventures include hotel, office, residential and retail properties throughout the New York area. For more information on Hidrock Realty, please visit www.hidrock.com
About Robert Finvarb CompaniesRobert Finvarb Companies is a private real estate investment company based in Miami, Florida. Robert Finvarb, founder of the company, started his development career in 2002. Since then, RFC has developed 12 hotels containing approximately 2,000 guestrooms that operate under various Marriott brands and are located within six states and the District of Columbia. For more information on RFC, please visit www.robertfinvarbcompanies.com
About KSG Enterprises, Ltd.KSG Enterprises, Ltd. is a subsidiary of Keck Seng (Malaysia) Berhad. For further information, please contact Peter Wong, President of KSG Enterprises, Ltd. or visit www.keckseng.com.
About JLLJLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. For further information, visit www.jll.com.
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