Hotel Capital LLC; Jumeirah Hospitality & Leisure Named to Replace
Starwood as Operator of the 605-room Hotel Bearing
Two Brands: Westin and St. Regis
NEW YORK - Sept. 8, 2005 -- Dubai Investment Group has purchased the Essex House Hotel from Strategic Hotel Capital LLC.
Dubai Investment Group is planning a $50 million renovation of the hotel to create a high-quality, five-star property of the Essex House. The hotel was built in 1931 and is acknowledged as one of the premier hotel locations at 160 Central Park South between Sixth and Seventh Avenues in New York City. The two components of the Essex House include the 501-room Westin and a 104-room St. Regis. There are currently 148 private residential condominiums located throughout the building and individually owned, of which 139 will not be included in the sale of the property.
Dubai Investment Group noted that there would be no decrease in employment at the Essex House. Plans call for approximately 15% of the rooms to be converted to condominiums, with some 85% of the rooms becoming a premier hotel operation. As a luxury hotel, the Essex House will be fully staffed as a high-service, high-quality operation.
"This investment by Dubai Investment Group represents our long-term commitment to the economic vitality of New York City. It is emblematic of our view that New York City and its hotel industry have a very strong and vibrant economic outlook," said Mohammed Al Gergawi, Executive Chairman of Dubai Holding, the parent company for Dubai Investment Group. "Our plan is to make the Essex House an icon that becomes a premier destination for visitors to New York City."
Mayor Michael R. Bloomberg said, "With the Dubai Investment Group closing on their purchase of the Essex House, another iconic hotel overlooking Central Park will be preserved and its unionized workforce protected. As part of the deal, the hotel will get a $50 million renovation, there will be no decrease of its 500 jobs, and approximately 85% of the rooms will be preserved. This is excellent news for New York's tourism and hospitality industries, which are a critical part of our City's economy, supporting more than a quarter-million jobs. And while the fact is that the number of hotel rooms in this City is growing, because of the ever-rising demand for housing in Manhattan, a number of our best-known hotels are undergoing condominium conversions. That's why we must encourage new hotel investment, like the deal being announced today, whenever possible. I thank the Dubai Investment Group for their investment in the future of New York and conserving part of our great City's rich history."
"We are delighted that Dubai Investment Group is purchasing the Essex
House as a hotel and will continue to operate it as a hotel," said Peter
Ward, president of the New York Hotel Trade Council. "We support their
plans to upgrade the level of service to make this one of New York's great
hotels, and the union and its membership will work with them to achieve
Strategic Hotel Capital LLC, the seller, is a private company whose principal shareholders are affiliates of Goldman, Sachs & Co. and investors advised by Prudential Real Estate Investors.
About Dubai Investment Group
About Dubai Holding
Hill & Knowlton
Anne Bleeker - Director of Public Relations & Communications
|Also See:||Elad Properties Backs Down from Controversial Plan for the 805-room Plaza Hotel; Fewer Condos, More Hotel Rooms Provides Union with More Jobs Saved / April 2005|
|Jumeirah International Takes Over Management of The Carlton Tower, and The Lowndes from Hyatt International / Nov 2001|