OCEAN CITY, Md., June 23, 2011 /PRNewswire/ -- Executives at Real Hospitality signed a deal with Gehr Development, retaining the management contract on the 244 room Four Points Midtown Times Square. Gehr Development, which owns the 33-story Fairfield Inn by Marriott Times Square at 330 West 40th Street, completed the acquisition of the adjacent Four Points by Sheraton Times Square, at 326 West 40th Street, for $112 million, or approximately $460,000 per room. The deal establishes Gehr Group's presence in the New York hotel market. Real Hospitality Group (RHG), established in June 2010 and headquartered in Ocean City, Md., operates both hotels for the Gehr Group.
The financing was completed this month with Tom McConnell, Jared Kelso and Ernest Lee of Cushman & Wakefield Sonnenblick Goldman's U.S. hospitality group representing Gehr in arranging a $170 million portfolio financing secured by both hotels.
"We wanted the adjacent hotel because we like the strong brand, the location and we also own the rooftop lounge, Sky Room Times Square, which straddles the 33rd and 34th floors of both hotels," said Gehr Group president David Lifschitz, who also confirmed that the company would not be joining the two hotels, which sit between Eighth and Ninth avenues. The Sky Room's location offers sweeping views of Manhattan to the north and south of the hotels.
"The Real Hospitality Group team has a proven track record of growth and success in our industry," offered Alfred Somekh, President for Gehr Development. "We have forged great relationships with our client ownership groups thus far," said Ben Seidel, President and CEO for RHG. "Our working knowledge of the hotels and an understanding of both the market and the ownership objectives create the business model for success in these hotels."
RHG is a recognized management company by Starwood, Hilton, Marriott, Wyndham, IHG and Choice Hotels. The company currently manages 2,554 guest rooms in Manhattan, Queens, Brooklyn, Montauk, Philadelphia, Morgantown and Fairmont, W.Va. and in the Lake George, Saratoga Springs area of New York. The portfolio also includes the state-of-the-art Morgantown Event Center with over 25,000 square feet of exhibit space, the new Wharf Brew Pub, a free standing waterfront restaurant in Morgantown's growing Wharf District and the Sky Room, the high profile, Manhattan rooftop club overlooking Times Square, New York.
For more information: www.realhospitalitygroup.com
SOURCE Real Hospitality Group