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Westchester Marriott Sold for $40 Million New Owners Plan $30 Million in Upgrades
TARRYTOWN—One of the most recognizable hotel properties in Westchester County—the Westchester Marriott—has changed hands in a $40-million transaction.
New York City-based Taconic Capital Advisors, HEI Hotels & Resorts of Norwalk, CT partnered to acquire the Westchester Marriott, a 444-key hotel in Tarrytown, from Ares Commercial Real Estate Corp. of New York City for $40 million. As part of the transaction announced on March 11, Ares Commercial is providing a financing facility in support of the new ownership’s business plan for the hotel property.
The 15-acre property, located at 670 White Plains Road, offers 21 event rooms for a total of 26,700 square feet of conference and meeting space, including a 9,000-square foot ballroom with a total capacity of 1,100 people. The property includes a Ruth’s Chris Steak House, Cooper Mill American restaurant, a gift shop, fitness center, spa and laundry.
The hotel will continue to operate under the Marriott flag and will be managed by HEI Hotels & Resorts. Taconic and HEI will execute a comprehensive $30-million case and soft goods renovation focused on all areas of the hotel. The Westchester market has lost nearly 1,200 directly competitive hotel rooms during the last several years, including more than 90,000 square feet of meeting space.
“The Westchester Marriott provides a unique opportunity in a time of continued and permanent market supply reduction,” said Andrew Lam, director with Taconic. “A property of this caliber, with a transformative renovation and new best-in-class management, is positioned to excel.”
“When sourcing this deal, HEI recognized the opportunity to execute a business plan that will maximize real estate value by relying on the company’s proven track record for successful repositioning,” said HEI CEO Anthony Rutledge. “We are excited to team with Taconic as we reenergize this asset.”
This is Taconic’s first acquisition with HEI and marks the company’s 12th hotel transaction, encompassing 17 properties and 3,700 keys, in the past year.
HEI Hotels & Resorts is one of the nation’s leading privately held hotel investment and third-party management companies, with a portfolio of 90-plus properties in the United States.
“We are very pleased to enter into this agreement in support of Taconic’s and HEI’s business plans for the Westchester Marriott,” said Bryan Donohoe, Chief Executive Officer of ACRE. “We believe the collaboration of Taconic and HEI and their demonstrated capabilities will enable the property to thrive in the evolving Westchester market.”
The Westchester Marriott was sold in June 2007 in a deal that sources estimated at the time was at approximately $65 million. Northview Hotel Group LLC of Westport, CT acquired the Westchester Marriott from Morgan Stanley. Morgan Stanley had implemented approximately $11 million in upgrades to the hotel in the previous two years.