DLJ Real Estate Capital Partners will need to pick apples elsewhere after selling the Nine Orchard hotel, its second major hospitality shakeup of the year.
Austin-based MML Hospitality purchased the 113-key property at 9 Orchard Street in the Lower East Side for $92 million, the Commercial Observer reported. The deal works out to $814,000 per key. MML is also acquiring Nine Orchard’s on-site restaurants.
MML did not respond to a request for comment from the outlet, while DLJ could not be reached by the Observer.
Emily Sundberg’s business Substack newsletter first revealed the transaction.
DLJ acquired the landmarked property in 2012 for $5.3 million, a century after it was built. It proceeded to renovate the former Jarmulowsky Bank Building, opening its doors to guests in June 2022. The 14-story, 71,000-square-foot hotel earned accolades from Travel + Leisure and welcomed celebrity clientele to its rooms, including Zendaya and Tom Holland.
DLJ, a private equity firm with offices in Manhattan, Boston and Hong Kong, has adopted a seller’s mindset in New York’s hospitality market this year.
In January, Blackstone agreed to purchase the Kimpton Hotel Eventi in Chelsea for $175 million. The property at 851 Sixth Avenue opened in 2010, representing New York City’s first Kimpton hotel. The 292-key hotel is close to Madison Square Park, Penn Station and the Empire State Building, featuring three restaurants, a 450-spot parking garage and 45,000 square feet of meeting space.
MML was previously oriented towards restaurants, but began adding hotels to its growing portfolio with the arrival of partner Liz Lambert during the pandemic. Last year, MML and Riverside Resources landed a $193 million construction loan for Sixth&Blanco, an ultra-luxury condo project in Austin’s Clarksville neighborhood; the five-floor development includes a 57-key hotel and 50,000 square feet of retail and restaurant spaces
Elsewhere in the Manhattan hotel market, Hawkins Way Capital recently purchased 99 Washington Street in the Financial District for $154.5 million. The 492-key hotel was sold by GF Hotels & Resorts, which took the property from Jubao Xie as receiver after a foreclosure filing in 2022.
Read more
Blackstone snaps up Kimpton Hotel Eventi for $175M
MML, Riverside score $193M construction loan for Sixth&Blanco
Hawkins Way buys former migrant shelter in FiDi for $155M
