Maefield Development has acquired the leasehold interest in the DoubleTree Guest Suites Times Square hotel from Sunstone Hotel Investors and has plans for a redevelopment of the property.

The company acquired the stake in the 468-room hotel at 1568 Broadway in the heart of Times Square for $540M, The Real Deal reports. The deal places a value on the hotel of a little over $1.15M per key. California-based Sunstone acquired its interest in January 2011 for $286M from a partnership led by Whitehall, a unit of Goldman Sachs.

Maefield's plans include a renovation of the hotel itself, a restoration of the historic Palace Theatre on-site, street-front retail and entertainment space, and a new, super high-res LED screen for the building’s façade.

Maefield is no stranger to the area, as the company also holds a stake in the 20 Times Square hotel, entertainment and retail development across the street from its newly acquired DoubleTree. The company is also developing a 452-room Edition Hotel by Marriott at 701 Seventh Ave in Times Square, which is scheduled to open in 2017. [TRD]