Square Mile Capital Management LLC has made a $75 million preferred equity investment in a 1,046-key multi-branded hotel project in the Times Square submarket.
The project at 150 W 48th Street is being developed by McSam Hotel Group.
Square Mile Capital and McSam structured the investment in conjunction with Adam Hakim and James Murad of Meridian Capital Group. It represents Square Mile Capital’s fifth Manhattan hotel development project alongside McSam Hotel Group.
Square Mile Capital Managing Director Elliot Rattner said, “This was an attractive opportunity to bolster our participation in the post-pandemic recovery of the New York City hospitality sector. We are confident that travelers to New York will once again want to stay in the center of all the City has to offer. Overall, once complete, this midtown Manhattan property’s unique location, brand affiliations, and diverse room offerings will create a compelling set of options for a variety of traveler segments.”
Managing Director Michael Lavipour added, “McSam Hotel Group is the best developer of select service hotels in New York City, which is also why we were immediately attracted to this investment opportunity. We value our long-standing relationship with McSam greatly, and we hope that we can continue to collaborate in the future as well.”
“The funding of this preferred equity investment is a testament to the market’s increasing confidence in a strong recovery of the New York City hospitality industry. A combination of factors such as a prime Times Square location, top Hilton hotel flags, and best-in-class developer sponsorship were all attractive features of this transaction. Square Mile worked expeditiously and levered their longstanding relationship and track record with McSam Hotel Group to get this transaction over the finish line and help see it through to completion,” saidHakim.
When completed, the 150 W 48th Street property will feature a Tri-Branded Hilton hotel consisting of a 288-key Home2 Suites, 358-key Hampton Inn, and 400-key Motto. The property’s location and variety of Hilton select service brands will allow prospective guests to cater to their specific travel accommodation preferences.
The property is situated between 6th and 7th avenues, in close proximity to Times Square, Rockefeller Center, Central Park, Fifth Avenue, Penn Station, and the Plaza District. Hotel guests will benefit from a variety of amenities at the property, including restaurants, lounges, coffee shops, breakfast dining facilities, exercise rooms, select meeting spaces, laundry facilities, and a shared rooftop lounge.
Construction is underway and the superstructure recently topped out in June 2021. Opening is expected by the end of 2022.