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Press Release
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Contact: Nick Derasmo (212.841.7505) |
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SONNENBLICK-GOLDMAN COMPANY ARRANGES SALE OF PARAMOUNT HOTEL IN NY FOR $126.5 MILLION |
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Thursday, July 08, 2004
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New York, NY
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On behalf of Morgans Hotel Group, Sonnenblick-Goldman Company has arranged the sale of the 593-room Paramount Hotel here to Lifestar Hotels LLC for $126.5 million. The hotel will undergo a multi-million dollar renovation by ownership and, upon completion, be rebranded as the Hard Rock Hotel, New York.
The 593-room Paramount helped define the boutique hotel concept and bring the boutique concept to the forefront of the lodging industry. Featuring an irreplaceable Times Square location, the hotel is in the heart of New York City and is near numerous commercial and leisure demand generators, such as MTV, Lehman Brothers, Reuters, Ernst & Young, and the Theatre District.
Commenting on the transaction, Sonnenblick-Goldman managing director and principal Mark J. Gordon states, "The sale of the Paramount was the perfect opportunity for Hard Rock Hotels because it enables them to establish a flagship presence in an ideal location in the best city in the world. As such, we were able to orchestrate a pre-emptive transaction that resulted in the best possible outcome for both the seller and the buyer."
Sonnenblick-Goldman’s transaction team for the assignment included Mr. Gordon and Mark K. Owens, senior associate.
Morgans Hotel Group, formerly known as Ian Schrager Hotels, is an innovative hotel owner, operator, and developer. The hotels’ modern concepts feature high style and luxury with an emphasis on personalized service, exacting standards, and approachable hospitality. Morgans Hotel Group has interests in and manages 10 hotels with approximately 3,000 guestrooms in the coastal gateway cities of New York, Miami, Los Angeles, San Francisco, and London.
Lifestar Hotels LLC, the joint venture between Hard Rock Cafe International and Sol Meliá SA, provides hotel owners a unique proposition to access the Hard Rock Hotel brand through long-term management agreements. New York will be the third Hard Rock Hotel to be part of the joint venture since its formation in 2003, the others being in Chicago (which opened earlier this year) and San Diego (which is due to open in 2006).
The Hard Rock Hotel New York’s location in Times Square will further establish the brand’s global presence. Hard Rock Cafe International is one of the most globally-recognized music, entertainment and dining brands, has a network of more than 115 signature Hard Rock Cafes in 44 countries, and owns the world’s greatest collection of music memorabilia. Hard Rock is known for its collectible and fashion merchandise, live concerts, Hard Rock Live performance venues, hardrock.com and Hard Rock Hotels and Casinos. Hard Rock Cafe International, Inc. is a wholly-owned subsidiary of London-based The Rank Group Plc (NASDAQ: RANKY). In addition to the joint venture with Sol Meliá, Hard Rock Cafe International also owns, operates or has licensed rights to full-service hotels in Las Vegas, Bali, Pattaya, Orlando, Tampa, Hollywood (Fla.) and Biloxi (opening 2005). Additional information on Hard Rock can be found at www.hardrock.com. |
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Sonnenblick-Goldman, LLC is the industry’s leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick-Goldman, LLC provides a full range of financial services, including debt and equity placements, joint ventures, investment sales and advisory services. Headquartered in New York, Sonnenblick-Goldman maintains offices in San Francisco, Boston, Hong Kong, Shanghai, Sydney and Tokyo. Further information can be found at Sonnenblick-Goldman, LLC’s website at www.cushwake.com/sonngold.
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