In a significant transaction within the New York City hotel market, Starwood Capital Group, led by Barry Sternlicht, has divested its remaining 49.9 percent stake in the Hilton Garden Inn 54th Street Nyc. The buyer is Morad Ghadamian, a New York-based investor with interests in real estate and carpet importing. This deal, reported by The Real Deal, values the 401-key property at an impressive $240 million.
The sale comes just over a year after the Hilton Garden Inn 54th Street NYC first opened its doors, highlighting the strong investor interest in newly established, well-located hotel assets. The 34-story, 142,300-square-foot hotel, situated at 233-239 West 54th Street, was co-developed by Starwood Capital and the Moinian Group. Its prime location is between Broadway and Eighth Avenue in Midtown Manhattan, a bustling area popular with tourists and business travelers alike. The hotel’s design is attributed to Gene Kaufman, and it began welcoming guests in January 2014.
While Starwood has exited its stake, the Moinian Group retains a minority interest, reportedly less than 25 percent. Additionally, an unnamed stakeholder continues to hold a small share in the Hilton Garden Inn 54th Street NYC. Financing for the acquisition involved a substantial 10-year, fixed-rate loan of $200 million secured from Morgan Stanley. JLL, with a team spearheaded by Dustin Stolly and Kevin Davis, acted as the representative for Moinian in this significant transaction. Neither Moinian, Starwood, nor representatives from JLL have offered public comments on the details of the deal.
The Hilton Garden Inn 54th Street NYC holds the distinction of being the largest Hilton Garden Inn in North America, a notable feature for potential guests and investors. The hotel also houses an Empire Steakhouse on its ground floor, occupying a 4,650-square-foot space, adding to the amenities and appeal of the location.
This sale occurs in proximity to another significant transaction involving Starwood Capital. Earlier in February, Starwood entered into an agreement to sell the Baccarat Hotel located at 20 West 53rd Street to Sunshine Insurance Group, a China-based entity, for $230 million. This Baccarat Hotel deal set a record at $2 million per room, even before the hotel’s official opening.
According to Sean Hennessey, CEO of Lodging Advisors, the Hilton Garden Inn sale is viewed differently from the Baccarat transaction by Starwood. Hennessey suggests that the Hilton Garden Inn 54th Street NYC was primarily a “financial investment” for Starwood, whereas the Baccarat Hotel might have held a different strategic importance in their portfolio.
The buyer, Morad Ghadamian, operating through the entity MG237 No. 2 LLC, has chosen not to comment on the acquisition. Public records show that Ghadamian and his wife Sima have a history of significant real estate investments, including a $27.5 million co-op purchase at 810 Fifth Avenue in 2012, a residence formerly owned by Nelson Rockefeller. Furthermore, Daniel Ghadamian, Morad’s son, is a principal at Capstone Equities, indicating a family deeply involved in real estate investment and development.
