Novotel Hotel Times Square Sold to Chartres Lodging & Apollo Global

Hotel Real Estate News NYC

Sometimes, the renovation costs almost as much as the purchase itself.

That is the case for the 480-room Novotel New York Times Square hotel, which hotel operator Accor SA has intentions to sell by the end of this month to a partnership of Apollo Global Management and Chartres Lodging Group for roughly $91 million, according to people familiar with the matter.

As part of the deal, Apollo and Chartres have agreed to spend roughly $86 million on a sweeping renovation of the Midtown hotel, these people say.

The overhaul would upgrade the hotel's air-conditioning system, refurbish its lobby and its restaurants, revamp its rooms and add meeting space and suites, among other changes. The hotel would remain open during the renovations.

For its part, Accor, the Paris-based owner of the Novotel, Motel 6, Grand Mecure and Sofitel hotel brands, among others, would receive a 25-year contract to continue managing the Novotel Times Square, according to these people.

 

The deal calls for Apollo to be the majority partner in the hotel, with Chartres as a minority partner. Jones Lang LaSalle is brokering the sale.

Source:

http://online.wsj.com/article/SB10001424052970203735304577167212784939618.html

 

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Tuesday, 01 March 2011 00:00

Accor to Sell Novotel Hotel 226 W. 52nd St

Accor, which owns the Sofitel Luxury Hotels and Motel 6 brands, among others, aims to sell the Novotel, at 226 W. 52nd St., as part of its strategy to shed real estate and instead focus on managing and branding hotels.

A buyer of the Times Square property will be required to keep Accor as the hotel's long-term manager, an Accor spokeswoman said

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