Magna Hospitality Group Sells Four Midtown Hotels for $489M

Magna Hospitality Group has sold four Midtown Manhattan hotels for a total of approximately $489 million.

The Rhode Island-based hospitality group offloaded the 196-key Hilton Garden Inn New York Times Square at 30 West 46th Street, the 374-key Motto by Hilton New York City Chelsea at 113 West 24th Street, the 320-key DoubleTree by Hilton New York Times Square South at 525 Eighth Avenue, and the 239-key Fairfield by Marriott Inn & Suites New York Midtown Manhattan/Penn Station at 325 West 33rd Street to a “group of large institutional investors,” according to property records and Crain’s New York Business.

While the real property value of the portfolio transaction was listed as closer to $359 million in property records, the value of the sale including the “personal property” was $489 million, according to a source with knowledge of the deal.

In a hotel sale, the real property value includes the land and permanent structures such as the building itself, while the personal property value includes “movable items” such as furniture, fixtures and equipment such as linens, TVs and kitchen appliances, the source said.

In terms of personal property values, Magna sold the Hilton Garden Inn for roughly $115 million and the Motto by Hilton for roughly $222 million, Crain’s reported, citing an initial report from CoStar. Magna then sold the leasehold interests in the DoubleTree by Hilton and the Fairfield Inn for about $99.8 million and $52.3 million, respectively, according to the outlet.

Magna — which still owns a handful of hotels in Manhattan — will retain a minority stake in the four hotels as part of the deal, Crain’s reported. JLL’s hotels and hospitality team brokered the deal.

JLL declined to comment, while a spokesperson for Magna did not immediately respond to a request for comment.

News of the deal comes after another recent Midtown hotel sale. Last month, Aya Acquisitions bought the 166-key Cassa Hotel at 66-70 West 45th Street for $54.7 million, as Commercial Observer previously reported.

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