Posted by Maria Gomez on August 22, 2012
Strategic Group to Acquire Jumeirah Essex House
Archived Under: Manhattan
Jumeirah Essex House (copyright Jumeirah)
Guess who wants ownership of the Jumeirah Essex House in Manhattan? None other than the Chicago-based REIT, Strategic Hotels and Resorts Group.
Since Essex House’s opening in 1931 it has been a huge success and has won numerous awards including the “Five Pavilions Award” in 2008 and the "United States' Leading Business Hotel" in 2011. The 45-story hotel’s prime location – the edge of Central Park South – coupled with its high quality service sets this luxury hotel up for success. It is this standard of excellence that has set the overall tone for luxury hotels in Manhattan for decades.
The Jumeirah is currently owned by the Dubai Investment Group LLC which acquired the hotel in 2005 for $440 million. When this group of investors decided to put this five star hotel up for sale, it was only natural that it caught the attention of the Strategic Group.
The REIT, whose portfolio consists of 17 world famous, luxury hotels and resorts including the Marriott, Ritz-Carlton, Hilton and Hyatt, are known for providing a high quality of service. The Strategic Group aims to provide its customers with excellent service, ambiance and amenities in desireable locations - the perfect luxury package. The opportunity to acquire this midtown Manhattan hotel is just the type of investment this REIT seeks.
How much will this purchase cost the Strategic Group? The acquisition is expected to cost $362.3 million, with another $18.3 million to be spent on renovating the historic building.
In addition to the hotel’s cosmetic changes, the name will be changed from “Jumeirah Essex House” to “JW Marriott Essex House New York.” According to Laurence Geller, the Strategic Group’s President and CEO, the combination of Jumeirah’s location, “Marriott’s outstanding distribution and world-class customer service,” and its “successful long-standing relationship with the Marriott brands," positions the Essex House for success.
The sale of this 80 year old luxury hotel is expected to close on September 7th.