Gencom Closes on $300M Acquisition of Thompson Central Park Hotel With $230M Loan
By Andrew Coen September 17, 2024 12:19 pm
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Gencom has acquired the Thompson Central Park New York hotel, the firm announced Tuesday,
The hotel traded for between $300 million and $310 million, sources familiar with the deal said. Gencom secured $230 million of financing for the purchase.
Ramsfield Hospitality Finance (RHF) and funds managed by AB CarVal and Affinius Capital provided the loan for the 588-key hotel at 119 West 56th Street in Midtown Manhattan.
Gencom acquired the asset from Elliot Management and GFI Hospitality, which rebranded the former Parker Hotel under the Thompson Hotels by Hyatt banner in late 2021. The joint venture acquired the hotel property from the Jack Parker Corporation for $420 million in early 2019.
“Recognizing the strength of the U.S. hospitality market, particularly in cities with high barriers to entry like New York, this transaction represents a key addition to our hospitality portfolio in North America that includes iconic hotel properties in major markets such as Miami, Chicago, Denver and Philadelphia,” Karim Alibhai, founder and principal of Gencom, said in a statement.
Eastdil Secured arranged both the property sale and loan. Jeffrey Davis, managing director at Eastdil Secured, said in a statement that the transaction “underscores the growing investor conviction in the New York City lodging market.”
The 42-story property on 56th Street between Seventh Avenue and the Avenue of the Americas recently underwent a $100 million renovation that was completed in late 2023. Its amenities include 4,500 square feet of meeting space, a 6,500-square-foot spa and a fitness center.
“Since reopening under its new flag, the Thompson Central Park has been remarkably successful and is well positioned to meet the considerable demand in Manhattan’s Midtown market,” David Greenburg, managing director at Affinius Capital, said in a statement.
“This transaction marks the beginning of our working relationship with Gencom and our involvement with Hyatt’s Thompson brand expansion.”
Adam Maisel, a principal at RHF, said in a statement that the hotel is in one of Manhattan’s “most dynamic markets” just three blocks from Central Park and that the “New York hospitality market continues to be one of the top markets in the U.S.”
Ryan Murray, director at AB CarVal, said the loan marks the lender’s eighth hotel investment in New York City. Together, the eight loans total $730 million.
“We remain active in hospitality lending throughout the U.S. despite market headwinds and continue to have a strong appetite to close more transactions like the Thompson Central Park,” Murray said.
Cathy Cunningham contributed reporting to this article.
Andrew Coen can be reached at acoen@commercialobserver.com
