Accor, Courcouronnes, France, announced on Friday the sale of its Novotel Times Square hotel in New York City for €71 million (US$93 million) to a joint venture formed by Chartres Lodging Group, San Francisco, and Apollo Global Management, New York City.
As part of the deal, Accor will continue to manage the 480-room property and the buyers have agreed to invest in a full renovation of the property at a cost of €89 million (US$117 million) between 2012 and 2013.
“This operation highlights once again our capability to attract leading investors willing to finance value-creative projects, as part of our asset management,” said Denis Hennequin, Accor chairman and CEO.
The hotel will remain open while the renovation is being carried out. In addition, an earn-out amounting up to €12 million (US$15 million) could be cashed in depending on the results of the hotel after the refurbishment.
“We will execute a complete modernization of the Novotel New York Times Square, including installation of a 4-pipe HVAC system, a full guestroom renovation and a total transformation of the public areas and Terrace Bar overlooking Times Square. We will also be adding Sky Boxes for innovative meeting rooms overlooking Broadway, two suites and a new fitness center,” said Maki Nakamura Bara, Chartres Lodging president and co-founder.
