LONDON (Alliance News) - Millennium & Copthorne Hotels PLC Monday said it has agreed to acquire the Novotel New York Times Square, a 34 storey mixed-use building from 226 West Fifty-Second Street, for USD273.6 million.
226 West Fifty-Second Street LLC is a partnership led by a fund affiliated with Apollo Global Management LLC and Chartres Lodging Group.
The Novotel building contains a four star hotel, office and retail space and a penthouse apartment.
Millennium & Copthorne Hotels said the most recent audited results for the hotel showed pretax profit of USD2.1 million for the year ended December 2012.
Completion of the acquisition is expected to occur during the second quarter of 2014.
Once the sale has been competed, the hotel will continue to be managed, as at present, by an affiliate of French hotelier Accor SA under a management agreement which has an initial term that ends on December 31, 2038. This may be extended by the manager for up to three successive 10 year period, the firm added.
The rest of the building is subject to two primary long-term leases, one for the first four floors of office and retail space and a separate lease for the top-floor penthouse space.
226 West Fifty-Second Street's interest as landlord under these leases will be assumed by Millennium & Copthorne Hotels as part of the transaction.
Millennium & Copthorne shares were up 1.00 pence at 567.50p early Monday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
