Blackstone to Acquire Chelsea Kimpton Hotel for $175M
By Isabelle Durso January 21, 2025 1:54 pm
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Blackstone (BX) is set to acquire the Kimpton Hotel Eventi in Chelsea for roughly $175 million.
The private equity firm has agreed to buy the 292-key hotel at 851 Avenue of the Americas from DLJ Real Estate Capital Partners, according to Blackstone.
“We are thrilled to acquire this terrific hotel located in one of the most dynamic areas of Manhattan,” Michelle Gelshteyn, managing director for real estate acquisitions at Blackstone, said in a statement sent to Commercial Observer. “This transaction reflects our longstanding conviction in New York City and growth in travel.”
Eastdil Secured brokered the deal for the seller, according to a source with knowledge of the deal.
Eastdil declined to comment, while a spokesperson for DLJ could not be reached for comment. Bloomberg first reported the news.
The sale comes at a time when “hotel demand in New York is nearing pre-COVID levels,” while new hotel developments have slowed thanks to zoning changes, Gelshteyn said.
And investors have noticed the uptick in business and started buying properties.
In July, Host Hotels & Resorts bought the 229-key 1 Hotel Central Park from Starwood Capital for $265 million, as CO previously reported. And in September, Gencom acquired the Thompson Central Park New York hotel from Elliot Management and GFI Hospitality for roughly $300 million.
It’s unclear what exactly Blackstone intends to do with its new 54-story hotel between West 29th and West 30th streets, but the firm has also invested in hotel portfolios in Florida and California in recent years, Bloomberg reported.
The Midtown Kimpton hotel has 30,000 square feet of meeting space, as well as three restaurants and a 450-car parking garage, according to Bloomberg.
Aside from hospitality, Blackstone made another major investment nearby in SoHo in November, when it purchased a four-property retail portfolio from ASB Real Estate Investments for $197.5 million, CO reported at the time.
Isabelle Durso can be reached at idurso@commercialobserver.com.
