New York Firm Buys Stake In Blackstone Hotel
Sage Hospitality has a new partner in the Renaissance Blackstone Hotel. The Denver-based firm sold a reported $57.5M stake in the 332-room hotel to New York-based Fundamental Advisors.
Sage bought the landmark hotel in 2008 and spent $128M, including $18M in city grants, on renovations. Sage put the hotel on the market last September. Analysts at the time estimated the hotel could sell for $165M, thanks to its location in the blistering hot South Loop market and its proximity to Millennium Park.
It's unknown what stake Sage still holds in the Blackstone, according to Crain's. Analysts believe the hotel could struggle for business when construction of McCormick Place's Marriott Marquis hotel is complete. Another possible obstacle for the Blackstone to overcome: Marriott's bid to acquire Starwood Hotels & Resorts. [Crain's]