New York, New York
ISTITHMAR Hotels has recently acquired two new properties, the classic, Beaux-Arts style Knickerbocker Hotel located in Times Square, New York City, and 280 Park Avenue in midtown Manhattan.
The first was acquired at a value of $300 million, and the latter was purchased from real estate investment trust Boston Properties for $1.2 billion. Both follow Istithmar’s acquisition of 230 Park Avenue last November.
The Knickerbocker, located in Manhattan on the southeast corner of Broadway and 42nd Street, is also known as 6 Times Square. Built in the early 1900s, it was one of midtown’s premier hotels and was converted in to an office property in 1950s. Located on the stately, handsome and imposing Park Avenue in midtown Manhattan, 280 Park Avenue is approximately 1.2 million sqft. Boston Properties acquired it in 1997 and will continue to serve as property manager and leasing agent.
There has been a significant rise in the number of tourists visiting the New York. According to a recent study traffic in 2005 increased to a record 41 million, up 2.8 per cent over 2004 and up 16.1 per cent from 2002’s 35.3 million.
Istithmar is currently anchored with investments including one in Kerzner Group (who develop and operate One and Only resorts). Others include the development of a $1.5 billion, 2000-room resort, Atlantis, on Dubai’s Palm island, and a major mixed-use project, Canal Point, also in Dubai, that is to include a luxury hotel. Istithmar Hotels recently announced the roll-out of budget easyHotels for the Middle East. A number of major international significant acquisitions in key international cities will soon be announced.