The Essex House, a landmark hotel on the southern edge of New York City‘s Central Park, has been sold to an investment company, The Strategic Group, which has announced that they have hired Marriott to run the property. In early September it will become the JW Marriott Essex House New York, leaving the Jumeriah group. This is a big win for folks in the Marriott Rewards program, as it opens up a great redemption option for them. It is a pretty safe bet that the hotel will be a Category 7 or Category 8 property meaning 35-40,000 points per night. Still, it will actually be an option, which is nice.
Marriott CEO Arne Sorenson appears quite excited to open up the new JW Marriot property:
We don’t have a JW in Manhattan. We have about 55 of them around the globe, and the brand is doing fabulously well. We wanted one in Manhattan.
That’s a solid vote of confidence in the upscale hotel market from the chain CEO.
The other interesting bit which comes up in reading the story is that the deal is returning the hotel to its previous owners, with a pretty nice profit, too. Strategic is buying the property from Dubai Investment Group for about $362mm. That’s a sizable chunk of change, but Strategic sold the property to the Dubai group for $440mm just seven years ago. Oh, and shortly after that purchase the Dubai group invested $90mm in renovations to the property. Seems like quite the score for Strategic.
The magic date is expected to be September 7, 2012; that’s when the deal is supposed to close and the branding switch.