NEW YORK CITY — Constellation Barclay Holding US LLC, an affiliate of Constellation Hotels Holding Ltd., has acquired an 80 percent interest in the historic 685-room InterContinental New York Barclay in Midtown Manhattan for $240 million. InterContinental Hotels Group (IHG) will hold the remaining 20 percent interest.
Together, the joint venture will own and renovate the asset, which is valued at $300 million prior to refurbishment. IHG has retained a long-term management contract on the property.
Built in 1926 with the support of the Vanderbilt family, this New York luxury hotel provides the ideal base for guests who want to shop on 5th Avenue and is just a short walk from the Museum of Modern Art, according to the hotel’s website.
The JLL Hotels & Hospitality Group, which arranged the transaction on behalf of IHG, was led by Mark Wynne-Smith, global CEO; Arthur Adler, managing director and CEO of the Americas; managing director Jeffrey Davis; and executive vice president Gilda Perez-Alvarado.
The InterContinental New York Barclay, located at 111 East 48th St., attracted strong interest from domestic, Middle Eastern and Asian investor groups by virtue of its long-standing reputation in New York, its affiliation with InterContinental Hotels, and its location in one of Manhattan’s strongest lodging submarkets, according to JLL.
“The parties of this joint venture seized an incredible opportunity to own and elevate the positioning of an iconic hotel in one of the top global lodging markets,” said Wynne-Smith. “We expect New York to continue its position as the leading market for investments in the United States as a result of its tremendous appeal to both domestic and offshore investors.”
JLL's Hotels & Hospitality Group specializes in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties.
— Matt Valley