Investment firm Gencom has entered the Manhattan hotel market with a deal for the Thompson Central Park, as the average daily room rate in New York has reached a record high.
Miami-based Gencom’s purchase of the 42-story, 587-key hotel, located at 119 W. 56th St., was backed with $230 million in financing from lenders Ramsfield Hospitality Finance, funds managed by AB CarVal and Affinius Capital. A spokesperson for Gencom didn’t immediately respond to a CoStar News request seeking information on the seller and final purchase price.
Located just a few blocks south of Central Park, the hotel, a flagship property of Thompson Hotels by Hyatt, recently completed a $100 million renovation of what was formerly known as the Parker Hotel, the lenders said in a statement. The property, with many rooms overlooking Central Park, features amenities including more than 4,500 square feet of meeting space, a 6,500-square-foot Exhale Spa and food and beverage options such as the Burger Joint.
“Recognizing the strength of the U.S. hospitality market, particularly in cities with high barriers to entry like New York, this transaction represents a key addition to our hospitality portfolio in North America that includes iconic hotel properties in major markets such as Miami, Chicago, Denver and Philadelphia,” Karim Alibhai, founder and principal of Gencom, said in a separate statement.
Gencom’s portfolio of luxury hotels, resorts and residences includes St. Regis Chicago and The Residences at The Ritz-Carlton in Philadelphia, according to its website.
The Midtown West and Times Square hospitality market, where the hotel sits, has benefited from a slew of tourist attractions and convention business. The city’s ban on short-term rentals and a reduction in the supply of some 20% of the city’s hotel rooms as they have been used to house migrants also played a part in driving the market’s revenue per available room up by 7.7% in the first half of the year, according to a CoStar analysis.
In 2023, seven properties in the area were sold for over $1.3 billion combined, led by the sale of the 610-room Park Lane Hotel to the Qatar Investment Authority for $623 million, or about $1 million a room, the CoStar report said, adding the deals speak to “the attractiveness of luxury-class properties” in the area.
New York’s average daily hotel rate has risen to a record high of about $308, according to CoStar data.
For the record
Eastdil represented the seller and also advised Gencom in arranging the acquisition financing.