Dive Brief:
- Blackstone Inc. will buy the Kimpton Hotel Eventi in New York City from DLJ Real Estate Capital Partners for approximately $175 million, Hotel Dive has confirmed.
- The 292-room lifestyle hotel, built in 2010, is in Manhattan’s Chelsea neighborhood, near corporate and leisure demand drivers such as Madison Square Garden, Hudson Yards and Manhattan West.
- According to Blackstone, the purchase reflects the strength of New York City hotel demand as room supply in the market sees limited growth and tourism recovers to pre-pandemic levels.
Dive Insight:
“We are thrilled to acquire this terrific hotel located in one of the most dynamic areas of Manhattan,” said Michelle Gelshteyn, managing director at Blackstone, in a statement obtained by Hotel Dive. “This transaction reflects our longstanding conviction in New York City and growth in travel.”
No new hotel construction permits have been filed in the last three years, while hotel demand continues to rise, “creating a compelling backdrop for fundamentals,” Gelshteyn added.
According to PwC, Manhattan hotels will benefit from minimal hotel room supply growth over the next several years. Meanwhile, growth rates for occupancy, ADR and RevPAR — while “robust” — continued to decelerate in the second quarter of 2024, PwC found.
At the same time, tourism to the city is recovering. In 2023, New York City saw 62.2 million visitors, or 93% of 2019 levels, according to the Office of the New York State Comptroller.
DLJ Real Estate Capital Partners did not immediately respond to a Hotel Dive request for comment.
One of six brands in IHG Hotels & Resorts’ luxury and lifestyle portfolio, Kimpton is expanding amid the company’s ongoing push in the sector. In a statement obtained by Hotel Dive, Leanne Harwood, IHG’s senior vice president for luxury and lifestyle brands in the Americas, said the company had made “significant progress in elevating and growing” the portfolio in 2024.
Kimpton has 135 hotels open or in the pipeline. The brand plans to open a third New York City hotel, Kimpton Rockefeller Center, in 2025.
