Leyad Invests in NYC’s Hospitality Sector: Acquires Iconic Ink48 Hotel in Hell’s Kitchen
Friday, December 13, 2024 – In a significant move that underscores its ambition within the North American hospitality market, Leyad, a prominent Canadian real estate investment firm, has announced the acquisition of the renowned Ink48 Hotel, nestled in the vibrant heart of New York City’s Hell’s Kitchen. This acquisition not only marks Leyad’s highly anticipated debut in the fiercely competitive New York City real estate market but also represents a strategic strengthening of its already impressive portfolio.
The deal, structured as a 50/50 joint venture with New York-based private equity firm Capstone Equities, signals a powerful collaboration. Capstone Equities, recognized for its extensive expertise and deep understanding of the NYC market, brings invaluable local knowledge and resources to the partnership. This synergistic collaboration will leverage the complementary strengths of both firms, paving the way for sustained success and enhanced value creation for the Ink48 Hotel.
The 222-room boutique hotel, boasting stunning views of the Manhattan skyline, is a true landmark, blending modern luxury with a captivating industrial heritage. Its prime location and strong brand recognition ensure continued appeal to both leisure and business travelers. This acquisition strategically aligns with Leyad’s broader vision of establishing a diverse portfolio of high-quality hotels in prime urban destinations across North America.
The closing price, representing a value of $275,000 per room key, is notable for being one of the lowest per-key closings for a renovated Manhattan hotel in recent years, showcasing a shrewd investment strategy. This underscores Leyad’s confidence in the current market conditions and its ability to identify and capitalize on undervalued opportunities within the hospitality sector.
Henry Zavriyev, CEO of Leyad, expressed his enthusiasm, stating, “The acquisition of the Ink48 Hotel represents a monumental step forward in Leyad’s ongoing commitment to expanding our presence in key urban markets. New York City, with its unparalleled global influence and vibrant tourism and business sectors, is the perfect addition to our growing portfolio. We are incredibly excited to partner with Capstone Equities, a leader in real estate investment, to leverage our combined expertise and bring significant value to this exceptional property. We see significant potential in the NYC hospitality sector and are actively pursuing further opportunities in this dynamic market.”
Beyond this specific acquisition, Leyad is proactively seeking other potential investments within the distressed hospitality sector, hoping to capitalize on the current market upswing and the flourishing tourism industry in New York City. This strategic approach further solidifies Leyad’s position as a key player in the evolving landscape of North American real estate and hospitality.
