Real estate investment trust Strategic Hotels & Resorts has completed the acquisition of JW Marriott Essex House Hotel in Manhattan, New York, for $362.3m in a joint venture with an affiliate of KSL Capital Partners.
Dubai Investment Group purchased the property, which also includes nine condominiums.
The new owners will immediately invest $18.3m on hotel renovation work, which will be operated by Marriott International under a 40-year agreement.
Opening in 1931, the 40-storey hotel in Central Park was renovated in 2007 with an investment of $90m.
Amenities at the 509-room hotel include a full-service spa and fitness centre, a restaurant and meeting and event spaces.
Strategic Hotels & Resorts president and CEO Laurence Geller said that attractive deal terms and the hotel's location encouraged the company to acquire the property.
The sale agreement was signed between the parties on 17 August.
"Consistent with our strategy of being an opportunistic investor, we moved quickly to take advantage of this highly-compelling opportunity," said Geller. "We are thrilled to have both another irreplaceable asset with Marriott International and to launch a new partnership with KSL Capital Partners, LLC, one of the industry's most admired investors."
Bank of America has provided $190m for the purchase of the property under first mortgage financing.
Strategic Hotels & Resorts, which owns 51% stake in the hotel, estimates the property to contribute $3.5m to its earnings in 2012.
The group owns 18 hotels and resorts in the US, Mexico and Europe.
Image: Marriott International will operate the Essex House Hotel in Manhattan, New York, under an agreement with Strategic Hotels & Resorts. Photo: courtesy of Marriott.
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