Marriott Sells the St Regis Hotel New York for US$310m
Main Photo: The St Regis Hotel New York
Date: November 2019
Location: East 55th Street, New York, NY, USA
Name: St Regis New York Hotel
No. of Keys: 200
Seller: Marriott International Inc. has sold the St. Regis New York for $310 million to Qatar’s sovereign wealth fund, offloading a historic property that served as the launching point for an indispensable cocktail, The Bloody Mary and global luxury brand.
Buyer: The purchase gives Qatar Investment Authority another trophy asset to add to an expanding portfolio across the globe. The fund has been boosting its investments in the U.S., including stakes in retail properties in Manhattan. In April, it announced an investment in the shops at the base of the St. Regis.
The hotel, located on East 55th Street near Fifth Avenue, was opened by John Jacob Astor IV in 1904. The 18-story Beaux-Arts building contains more than 200 guest rooms and the King Cole Bar, a watering hole where the Bloody Mary is said to have been invented.
Room rates on Thursday night ranged from $779 to more than $4,000 for a suite, according to Marriott’s website. Marriott will continue to operate the hotel under a long-term contract with QIA, according to a filing.
Marriott acquired the Manhattan hotel when it bought Starwood Hotels & Resorts in 2016, a $13.6 billion transaction that reshaped the global hospitality industry. By then, the St. Regis name had been re-purposed as a luxury hotel brand with outposts in places like Shenzhen, China and Bora Bora, in French Polynesia.
JLL Hotels & Hospitality advised Marriott on the St. Regis transaction.
Price: US$310
Price per Key: US$1,550,000
THPT Comment: A bargain compared to the price that London’s Ritz Hotel is likely to go for. Any hotel barman that invents a cocktail line the Bloody Mary is alright in our book!
First Seen: Bloomberg
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