Square Mile lends $ 75 million for the development of a Hilton brand hotel in Manhattan – Commercial Observer
Capital management per square mile provided a $ 75 million preferred stock investment for the construction of McSam Hotel Group‘s 1,046 keys, Hiltonbrand development in Midtown Manhattan, indicating its bullish outlook for the recovery of New York’s hotel economy, the lender said on Tuesday.
McSam and Square Mile structured the transaction to 150 West 48e Street near Times Square in collaboration with Adam hakim and Jacques Murad of Meridian Capital Group. The deal marks Square Mile Capital’s fifth Manhattan hotel project alongside McSam.
“It was an attractive opportunity to strengthen our participation in the post-pandemic recovery of the New York City hotel sector”, CEO of Square Mile Elliot Rattner said in a statement. “We are confident that travelers to New York will once again want to stay in the center of all the city has to offer. Overall, when complete, this downtown Manhattan property’s unique location, brand affiliations, and various room offerings will create a compelling set of options for a variety of traveler segments.
S3 Capital also provided a $ 230 million senior construction loan for the property.
Officials at McSam, based in Great Neck, New York, did not immediately respond to a request for comment on the funding.
Upon completion, the property will include a Hilton branded hotel development consisting of a Home2 Suites, 358 keys Hampton inn and 400 keys Currency. Its amenities will include restaurants, lounges, cafes, breakfast rooms, exercise rooms, select meeting spaces, laundry facilities and a shared rooftop lounge.
Construction is underway and the project is scheduled to open by the end of 2022.
“The funding for this preferred stock investment demonstrates growing market confidence in a strong recovery in the New York hotel industry,” Hakim said in a statement. “A combination of factors such as a prime location in Times Square, top Hilton hotel flags, and top-notch developer sponsorship were all compelling features of this transaction. “