Prospect Ridge Buys Chelsea Holiday Inn for $60M

Prospect Ridge has picked up a hotel in Chelsea for $59.8 million, according to city records made public Monday.

The private equity firm, through the entity Cactus Street Propco, purchased the Holiday Inn Express New York City hotel at 232 West 29th Street from the entity Brisam Management, which seems to be tied to hotel operator Sam Chang’s McSam Hotel Group.

The entity also comprises KSL Capital Partners and Hersha Hospitality Trust, records show, with Hersha acting as manager of the hotel, Crain’s New York Business reported.

Matthew Livian, managing director at Prospect Ridge, signed for the buyer, while Stephanie Galli, Hersha’s senior vice president, signed for the sellers, according to records.

It’s unclear who brokered the deal. Spokespeople for Prospect Ridge, KSL Capital and Hersha did not immediately respond to requests for comment. PincusCo first reported the news.

Chang, who is in the midst of retiring, has offloaded numerous hotel properties over the past two years, including three Midtown hotels, which the developer sold for more than $200 million in December 2023, The Real Deal reported.

Brisam bought the 15-story Holiday Inn between Seventh and Eighth avenues within a portfolio of six properties it purchased in November 2023 for a total of $317.8 million, according to PincusCo.

KSL acquired Hersha in 2023 for about $1.4 billion and took the company private in December.

While KSL Capital and Hersha have both offloaded hotels in Miami, this deal seems to be their most recent deal in New York City.

The sale comes after another Holiday Inn Express hotel at 833 39th Street in Sunset Park, Brooklyn, sold for $20 million last month, as CO previously reported. W&L Group sold that property to CH Associates XII, an entity seemingly tied to Priya Realty.

Update: This story has been updated to clarify Sam Chang was one of the sellers.

Isabelle Durso can be reached at idurso@commercialobserver.com.