{"id":1004036490,"date":"2012-02-13T05:41:04","date_gmt":"2012-02-13T13:41:04","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004036490"},"modified":"2022-12-08T07:49:48","modified_gmt":"2022-12-08T15:49:48","slug":"chartres-apollo-global-jv-buys-times-square-novotel-in-212m-deal","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/chartres-apollo-global-jv-buys-times-square-novotel-in-212m-deal\/","title":{"rendered":"Chartres, Apollo Global JV Buys Times Square Novotel in $212M Deal"},"content":{"rendered":"

February 13, 2012<\/strong>
\nBy Scott Baltic, Contributing Editor<\/em>
\n\"\"<\/a><\/p>\n

Under a sale and management-back agreement, a subsidiary of Accor Business and Leisure Management L.L.C. has sold the 480-room Times Square Novotel in New York to a joint venture of Chartres Lodging Group L.L.C. and Apollo Global Real Estate Management L.P., the parties announced Friday. Apollo is the real estate management group of Apollo Global Management L.L.C.<\/p>\n

The deal is worth $212 million, or $443,500 per room, of which the actual selling price is $94 million. In addition, the buyer has committed to completing a full renovation (its scope defined by Accor) over the next 18 months, at an estimated cost of $118 million.<\/p>\n

In addition, an earn-out totaling up to $16 million could be cashed in depending on the hotel\u2019s results after the refurbishment. The hotel will remain open while the work is being done and will continue to be operated by Accor under a long-term management agreement. Jones Lang LaSalle Hotels arranged the sale on behalf of the seller; JLL\u2019s team was led by managing director Jeffrey Davis and senior vice president Gilda Perez-Alvarado.<\/p>\n

The deal is unusual in that the money earmarked for renovation exceeds that for the purchase itself.<\/p>\n

Chartres Lodging president and co-founder Maki Nakamura Bara told Commercial Property Executive<\/em> that \u201cNovotel is generally considered an upscale brand, but after the renovation, the Novotel Hotel New York will likely compete more in the upper upscale segment,\u201d he said. \u201cThe hotel will remain a Novotel-branded property after the renovation and will be the flagship for the brand in the U.S.\u201d<\/p>\n

An industry source who\u2019s familiar with the hotel market in the Times Square area and who wished to remain unnamed told CPE<\/em> that \u201cthe quality has gone up\u201d there in recent years, with the other hotels either newly built or recently renovated. The renovation of the Novotel, built in 1984, the source said, will bring it up to a level where it can compete with the world-class hotels nearby.<\/p>\n

The renovation will include installation of a 4-pipe HVAC system and full renovations of guestrooms, the public areas and the Terrace Bar overlooking Times Square. The repositioning will also add Sky Boxes (\u201cinnovative meeting rooms\u201d overlooking Broadway), two suites and a new fitness center.<\/p>\n

Accor is the world\u2019s leading hotel operator, with more than 4,400 hotels and 530,000 rooms in 90 countries.<\/p>\n

*This story was updated at 7:20 a.m. EST on Feb. 14, 2012, to clarify the relationship between Apollo Global Real Estate Management L.P. and Apollo Global Management, L.L.C.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Under a sale and management-back agreement, a subsidiary of Accor Business and Leisure Management has sold the 480-room Times Square Novotel in New York to a joint venture of Chartres Lodging Group and Apollo Global Real Estate Management.<\/p>\n","protected":false},"author":1201,"featured_media":1004038848,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21808,21751,21783,21742,10],"tags":[],"class_list":["post-1004036490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-featured","category-hotel","category-investment","category-latest","category-northeast"],"acf":[],"yoast_head":"\nChartres, Apollo Global JV Buys Times Square Novotel in $212M Deal - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/chartres-apollo-global-jv-buys-times-square-novotel-in-212m-deal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chartres, Apollo Global JV Buys Times Square Novotel in $212M Deal\" \/>\n<meta property=\"og:description\" content=\"Under a sale and management-back agreement, a subsidiary of Accor Business and Leisure Management has sold the 480-room Times Square Novotel in New York to a joint venture of Chartres Lodging Group and Apollo Global Real Estate Management.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/chartres-apollo-global-jv-buys-times-square-novotel-in-212m-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2012-02-13T13:41:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T15:49:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2012\/02\/021312-Novotel-New-York.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"480\" \/>\n\t<meta property=\"og:image:height\" content=\"270\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nicholas Ziegler\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/chartres-apollo-global-jv-buys-times-square-novotel-in-212m-deal\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/chartres-apollo-global-jv-buys-times-square-novotel-in-212m-deal\/\",\"name\":\"Chartres, Apollo Global JV Buys Times Square Novotel in $212M Deal - 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