One of the foremost luxury hotel properties in midtown Manhattan, The New York Palace Hotel, is all set to be acquired by the founder and owner of Blackstone Group LP, John Kukral through his newly launched investment management vertical, Northwood Investors LLC for a total sum of $400 million as per sources close to the matter. The New York Palace Hotel is currently under the ownership of an entity that has its roots in the royal family of Brunei. This immensely luxurious and highly popular hotel property was previously known as the Helmsley Palace, that was later acquired by a partnership venture owned by Sultan of Brunei for $200 million in the year 2003. As of now, the New York Palace Hotel is operated by the Dorchester Collection, an organization that is also well known for its management of various other hotel properties such as the Beverly Hills Hotel in California and the Dorchester in London.
The New York Palace Hotel features 899 rooms and the sum of $400 million comes to the valuation of about $445,000 per room and as per industry experts this valuation of a New York based luxury hotel is quite low compared to the current valuations of other luxury hotel properties. However, the low valuation of the New York Palace Hotel has largely been attributed to the fact that the property is currently under leasehold agreement with the Archdiocese of New York, who is also the owner of the land on which the hotel property has been developed. This marvelous hotel establishment is known to shower its guests with luxury featuring brocade drapes and marble bathrooms and the rooms begin at $369 a night. Northwood Investors LLC was founded in the year 2006 by John Kukral with the sole intent of investing in commercial properties and till now, Northwood has under its some of the biggest names in the hospitality industry such as Radisson Hotel Boston and Alden Houston Hotel.