Blackstone agreed to buy the Kimpton Hotel Eventi in Midtown as strong travel demand makes Manhattan hotels attractive to property investors.
The alternative asset manager agreed to pay about $175 million to acquire the 292-room property from DLJ Real Estate Capital Partners, according to a Blackstone representative.
Blackstone’s deal comes at a time when New York hotels are enjoying favorable demand trends. Bookings are approaching 2019 levels, and new supply has been limited by zoning changes that restrict the development of more hotels. Those dynamics have appealed to investors recently, with buyers snapping up properties such as the 1 Hotel Central Park and the Thompson Central Park.
The Kimpton deal follows Blackstone’s $200 million acquisition of a four-property retail portfolio in SoHo. Last year, the company also extended its lease on its Manhattan headquarters and boosted the space it would occupy.
“This transaction reflects our longstanding conviction in New York City and growth in travel,” said Michelle Gelshteyn, a managing director at Blackstone. “Hotel demand in New York is nearing pre-Covid levels while no new hotel construction permits have been filed in the last three years, creating a compelling backdrop for fundamentals.”
A DLJ Real Estate Capital Partners representative didn’t immediately return a message seeking comment.
The Kimpton hotel is located on Sixth Avenue between 29th and 30th streets, putting it in close proximity to the Empire State Building, Madison Square Park and Penn Station. The property includes three restaurants, about 30,000 square feet of meeting space and a parking garage with 450 stalls.
Blackstone is a longtime lodging industry investor. Last year, the company struck deals for the W Fort Lauderdale and the Hyatt Regency Clearwater. It has also made significant investments in portfolio properties such as the Hotel del Coronado in California and Hawaii’s Grand Wailea Resort.
