Chinese Buyer Pays More than $230 Million for Baccarat Hotel New York
- Feb 15, 2015
By Veronica Grecu, Associate Editor
China’s Sunshine Insurance Group Co. is purchasing the Baccarat Hotel New York in Midtown Manhattan for more than $230 million, Starwood Capital Group announced in a statement.
Located at 20 West 53rd Street, off Fifth Avenue and directly across from the Museum of Modern Art, the luxury hotel is part of the Baccarat Hotel & Residences, a condo/hotel/library building developed by a joint venture between Starwood and Tribeca Associates. The 50-story glass tower was completed ahead of schedule in fall 2014—but the project’s condominium component was already 60 percent sold in June 2014, according to Real Estate Weekly.
Designed by Skidmore Owings & Merrill (SOM) to honor the Baccarat heritage that spans 250 years, the landmark tower consists of 61 exclusive condominiums boasting interior designs by award-winning designer Tony Ingrao. With prices varying from $3.5 million to $60 million and ranging in size from 1,000 square feet to 7,400 square feet for a penthouse, the units at Baccarat are listed among New York City’s most expensive residences.
The hotel component occupies the first 12 floors of the building and is slated for opening in the first week of March. Gilles et Boissier, an interior design studio based in France, created the interiors of the hotel. The Grand Salon, which is one of the largest lobbies of any luxury hotel in New York City, and the silver leafed Petit Salon, will showcase a curated rotating collection of Baccarat “treasures” from the Baccarat museum in Baccarat, France.
According to Lodging Advisors CEO Sean Hennessey who was quoted by The Wall Street Journal, the fact that the Chinese buyer paid more than $2 million per room for a completely new, yet-to-be-launched luxury property shows that market conditions are very robust in New York City. The hotel’s website shows room rates starting at $729 per night for a Classic King and reaching $18,729 per night for the glitzy Baccarat Suite.
In fall 2014 another Chinese buyer, Anbang Insurance Group, snagged the historic Waldorf Astoria New York from Hilton Worldwide Holdings Inc. for nearly $2 billion.
Starwood was advised by Eastdil Secured LLC and represented by Greenberg Traurig LLP in the transaction, while Sunshine Insurance Group was represented by Holland & Knight LLP with JLL’s Hotels & Hospitality Group serving as legal adviser.
Rendering courtesy of SOM