Strategic was indeed strategic. It sold at the height of the U.S. real estate market, watched as Jumeirah poured in millions in renovations, then bought the recently revamped property for almost $80 million less than it had sold it for seven years earlier.
As Strategic Hotels & Resorts and Marriott International gear up to move back into the Essex House Hotel in New York—a property both companies have once owned or operated—Jumeirah Group is saying goodbye to its only North American property.
In 2005, Strategic sold the Essex House to Dubai Investment Group for approximately $440 million when it had 605 rooms. Last week, Strategic agreed to repurchase the now-518-room property for approximately $362.3 million and announced they would reflag to a JW Marriott in 2013.
The trade worked out well for Strategic, said Diane Morefield, executive VP and CFO.
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