The W at New York Union Square is going to be sold off to a partnership led by Host Hotels & Resorts Inc. According to the property owners, this sale is part of the bankruptcy proceedings that had resulted in this settlement. The other partners will be Istithmar World PJSC. This company is a unit of Dubai World that defaulted the previous year on the debt incurred due to buying the hotel in 2006.
Terms of this deal haven’t been disclosed in this statement. But the parties involved filed a joint liquidation plan at the U.S. Bankruptcy Court in Delaware. Though Istithmar officials did not say anything, but this transaction might complete the process started in December, when LEM became the main holder of the property by paying $2million for a part of the debt. Dubai World, a holding company for the Middle Eastern emirate, paid a whopping $285 million for this 270-room hotel located at the hub of the U.S. commercial property market.
The W is currently operated by a unit of White Plains, New York-based Starwood Hotels & Resorts Worldwide Inc., the third-largest lodging company in the U.S. The W Hotel Management Inc. will go on managing the hotel under the existing agreement.