Merchants Hospitality Closes on $38 Million Financing on Z Hotel
Industry: Real Estate
The Hotel is the Premier Lifestyle Hotel in Long Island City
Long Island City, NY (PRUnderground) October 22nd, 2019
Merchants Hospitality, New York’s largest privately held hospitality company, has successfully closed financing on another one of their hotel properties with a new $38 million mortgage for its Z Hotel in Long Island City. https://www.zhotelny.com/ The mortgage was financed by Taconic Capital Advisors, the $6 billion global investment firm.
The $38 million financing replaces the construction financing that Merchants utilized to completely renovate the hotel and retail spaces over the last 12 months. The financing, along with over $15 million in equity, was utilized for the acquisition and renovation which includes the newly created 100 room lifestyle hotel which features unparalleled views of Manhattan and the East River. Merchants Hospitality recently signed a major lease at the Z Hotel with NEP Group, Inc., the international audio video broadcast technology company. Part of the renovation included the recently developed and newly opened Savanna Rooftop Lounge, one of Merchants Hospitality’s award-winning brands. https://savannarooftop.com/ . Merchants will also open its 4th Treadwell Park at the Z Hotel in the Spring of 2020. The balance of the retail space is being marketed by Jeff Roseman and Ross Kaplan of Newmark Knight Frank.
Merchants Hospitality was advised on the transaction by Robert Verrone, Chris Herron and Kevin Thomson of Iron Hound Management. Iron Hound, Merchants long-time capital advisor, has closed on over $1.5 billion in financing for Merchants Hospitality and its principals including Starwood Resort & Casablanca Casino, Cachet Hotel, 237 Park Avenue and 450 West 33rd Street, currently known as 5 Manhattan West in Hudson Yards.
The Z Hotel, currently managed by Real Hospitality Group, is known for its unobstructed, 180-degree skyline views of Manhattan and floor-to-ceiling windows in every room. The property includes 45,000 square feet of retail, office, food & beverage and amenity space. The hotel features a complimentary breakfast and luxury shuttle service, dramatic outdoor spaces, sophisticated modern hotel rooms and suites, and concierge services for its hotel guests.
About Merchants Hospitality Inc. www.MerchantsHospitality.com
Founded in 1988, Merchants Hospitality (“Merchants”), and its Principals, have owned, operated, and developed some of the most luxurious Properties, Hotels and Restaurants in the Country and abroad. Properties have included Hotels, Residential Condominiums, Office Buildings and Restaurants including 485 Fifth Avenue, currently home to the Hyatt Andaz, the Cachet Hotel in Manhattan, the Z Hotel in Long Island City, 260 Park Avenue South Luxury Condominium, Aruba Starwood Hotel, Resort & Casino, NYC’s famous Pier 15 at South Street Seaport, 350 Madison Avenue, 230 Park Avenue, 237 Park Avenue and 1440 Broadway to name a few.
One of Merchants Hospitality’s portfolio company investments, Cachet Hotels & Resorts, is a Hong Kong‐based hotel company, that specializes in boutique lifestyle hotels. Cachet Hotels & Resorts properties are located worldwide including Shanghai, New York, Cabo San Lucas, Phuket Thailand and Cachet’s Luxury Golf Resort Sand Hollow in Utah. https://cachethotels.com/ Merchants Hospitality owns 18 premier restaurants in NYC including Philippe Chow, off Madison Avenue, as well as the Philippe Chow at the Dream Hotel, Treadwell Park, Ivy Lane off Park Avenue, Ophelia Lounge on top of the Beekman UN Hotel, Sugar East, Industry Kitchen, and Merchants River House. Merchants’ principals Abraham Merchant, Richard Cohn and Adam Hochfelder have been industry leaders in the real estate and hospitality world for over 30 years and have been honored by multiple charities across the country.
About Iron Hound Management
Iron Hound Management is a real estate investment company specializing in commercial debt and equity transactions. Founded in 2009 by Robert Verrone and Chris Herron, the firm has completed more than $20 billion in transactions. Iron Hound’s boutique size combined with the wealth of experience and proven integrity of its group provides a dedicated advocacy structure for our clients. This ensures the best possible results across a wide range of services including origination, underwriting, due diligence, structuring and securitization https://ironhound.com/
About Real Hospitality Group
Ocean City, Maryland-based Real Hospitality Group, with offices in New York City, Ocean City, and Fort Lauderdale, is a full-service hotel management company. Real Hospitality Group is one of the top 15 U.S. hotel management companies in the United States and the RHG portfolio includes over 100 hotels open and in development in key markets and resort destinations. The company is a recognized service provider for leading brands including Marriott International, Hilton Hotels & Resorts, Hyatt Hotels Corporation, InterContinental Hotels Group PLC, Choice Hotels International, Inc., Wyndham Hotels and Resorts and Red Lion Hotels Corporation as well as a growing portfolio of independent luxury boutique hotels including MADE in New York City and Ruschmeyer’s in Montauk, NY. RHG focuses on comprehensive development management services, revenue performance, guest experience and business development for hotels, resorts and investment ownership groups