Hilton Garden Inn New York/Times Square Central Sold to DiamondRock for $127.2 Million

By Veronica Grecu, Associate Editor

DiamondRock Hospitality, a real estate investment group based in Bethesda, Md., recently added a new hotel to its portfolio of 27 properties across the U.S.

Hilton Garden Inn New York/Times Square Central during construction

The company acquired the 282-room Hilton Garden Inn New York/Times Square Central in a $127.2 million transaction which translates into approximately $451,000 per guest room. DiamondRock expects the new asset to generate $5 million of adjusted earnings in 2014, according to an official statement.

“Leisure demand is robust for this location with Times Square remaining the most visited tourist attraction area in the world with more than 39 million visitors per year,” said Mark W. Brugger, president and chief executive officer of DiamondRock. “We expect this hotel to be very successful and one of the highest RevPAR and highest profit margin hotels within our portfolio,” Brugger added.

Located at 136 West 42nd Street between Avenue of the Americas and Broadway, Hilton Garden Inn New York/Times Square Central  is within walking distance to various Manhattan landmarks such as Radio City Music Hall, Madison Square Garden, Grand Central Station and Jacob Javits Convention Center. The hotel, which celebrated its grand opening on September 1, will be operated by Highgate Hotels. According to a previous report by The Real Deal, the 282-room mid-priced hotel is a new development which broke ground in spring 2012 as a joint venture between Highgate Holdings, Crown Acquisitions and Ashkenazy Acquisitions. Rising 35 stories above ground, the structure was designed by Peter F. Poon Architects and includes nearly 23,000 square feet of premium office and retail space on the first three floors. The original investors will maintain control of the hotel’s commercial component and are expected to rent out the spaces at around $1,000 per square foot, the news source reported.

The list of amenities at the Hilton Garden Inn New York/Times Square Central includes a self-service business center, meeting spaces equipped with the latest presentation technology, a fitness center, Wi-Fi access, and an onsite restaurant located within the hotel lobby on the fourth floor.

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Images courtesy of Hilton garden Inn/Times Square Central via Facebook