Procaccianti Acquires Two Hotels, Plans Upgrade

NEW YORK CITY-Cranston, RI-based real estate developer and hotelier the Procaccianti Group has acquired two New York City hotels: the 300-room Tudor Hotel at the United Nations and the 227-room Holiday Inn Soho. The Procaccianti Group also appointed former Helmsley Enterprises operations director, Louis Lach, as area manager. The Procaccianti Group plans to invest $8 million to 10 million in the Tudor Hotel at the United Nations to upgrade the guest rooms and other public space.

Located in Midtown, the Tudor Hotel at the UN is part of the Tudor City historic area and is in close proximity to Grand Central Station, the Midtown business district, Midtown East and Upper East Side residential neighborhoods. The hotel is located directly across the street from the Pfizer World Headquarters and is nearby the world headquarters of Metropolitan Life Insurance and Colgate Palmolive.

Cushman & Wakefield Sonnenblick Goldman was hired by the seller of each property to serve as the exclusive advisor for each transaction. Although Mark Gordon, EVP, principal and head of Cushman & Wakefield’s US Hotel Group, tells GlobeSt.com that the price and sellers could not be disclosed at this time but did say that the properties were owned by two different investment groups. “The Soho property sellers were based out of New York City and the Tudor Hotel seller was based in Washington, DC.”

He notes that the city continues to be the destination for global hotel investment “as evidenced by the interest we received for both transactions.” He continues that the Procaccianti Group had not previously invested here.

The Procaccianti would not respond to GlobeSt.com inquiries prior to deadline. “We have been interested in the New York City market for some time and despite the significant asset appreciation that has occurred over the last few years, we believe it to be one of the best long term investment markets in the country and the world” states Robert Leven, CIO for the Procaccianti Group, in a release. “The Tudor Hotel at the United Nations is a quality asset with an irreplaceable location, and the Holiday Inn SoHo is located in the heart of Downtown Manhattan in a neighborhood that has experienced a tremendous resurgence in both residential and commercial office real estate.”