US: Affiliates of private equity manager Paceline Equity Partners have acquired the Home2 Suites by Hilton New York Long Island City.
The 115-key Home2 Suites in Long Island City was developed in 2014 and has recently been renovated. The property is viewed as the urban flagship for the brand and is one of three Hilton-branded extended stay properties in New York City.
The acquisition represents the second partnership with investment platform Highline Hospitality Partners following the joint purchase of Sheraton Suites Atlanta Galleria last year.
Sam Loughlin, CEO of Paceline, said: “The Home2 Suites represents our first hospitality investment in New York City, and the tenth hotel in our portfolio. The hotel has capitalised on the strong leisure and business travel in the Long Island City submarket as the neighbourhood has developed, highlighting the area’s strong recovery from the pandemic and diverse economic tailwinds.”
Leigh Sansone, chief investment officer of Paceline, said: “The transaction’s favourable tax abatement and assumable, fixed rate financing provide attractive cash on cash yields relative to the current tax and debt structures which are available in the market. Paceline’s acquisition of the Home2 Suites by Hilton New York Long Island City highlights our ability to leverage our existing operating partner relationships and to identify attractive opportunities across all market environments.”
Home2 Suites by Hilton has 560 properties open and nearly 100 in development.
