NEW YORK CITY Notable developer Aby Rosen has agreed to purchase Manhattan’s Paramount Hotel, a 1980s cultural hotspot and one of the earliest boutique hotels.
Rosen will pay US$275 million for the 597-key hotel, or about US$461,000 per key, according to The Wall Street Journal. The seller is a joint venture between Walton Street Capital and Highgate Holdings.
The 83-year-old hotel became a sensation in the 1980s under the leadership of Ian Schrager, becoming a cultural hotspot, but its star has faded in recent years amid the boutique hotel boom. The French Renaissance-style building has undergone more than US$40 million in renovations since 2009, modernizing the lobby and swapping a European-style sports bar for a chic lounge.
Rosen’s RFR Holding expects the sale to close in the third quarter. It is unknown what Rosen plans to do with the property.