Marriott International confirmed on Wednesday plans to open an Edition-branded 452-room hotel in New York City as part of a mixed-use development at 701 Seventh Avenue in Manhattan.
Scheduled to open in 2017, the Times Square Edition will be the second hotel for the brand in the city, with the first Edition for New York set to open in 2015 at the Clock Tower building at 5 Madison Avenue. Marriott signed a long-term management agreement for the Times Square Edition.
Starwood Property Trust and iStar Financial provided to the ownership group of The Witkoff Group, Winthrop Realty Trust New Valley LLC and Maefield Development an US$815 million construction loan for the mixed-use project, which includes the hotel and retail space. In addition, Starwood Property Trust and Starwood Capital Group Global and its affiliates have an equity interest in the transaction. Law firm Kasowitz’s real estate group represented the borrower in the acquisition of the construction loan. As additional collateral for the loan, Marriott International, Bethesda, Maryland, has agreed to provide the lenders with the right (upon an uncured event of default under the loan agreement) to require Marriott to purchase the hotel component of the property during the first two years after opening for US$314.6 million (US$696,000 per room).
“New York is one of the most important destinations in the world, and we are delighted to have secured yet another iconic Manhattan location for our second Edition hotel in the city,” said Arne Sorenson, Marriott’s president and chief executive officer. “Following the hugely successful opening of The London Edition last year, we couldn’t be more excited about the potential for this brand.”
The news comes just a week after Marriott International sold the London Edition and signed binding agreements for the sale of the Clock Tower building and the Edition planned for Miami Beach for US$815 million.
Marriott also has plans for Editions in Los Angeles, Bangkok and Abu Dhabi, United Arab Emirates. The brand was conceived in collaboration with Ian Schrager.