Marriott International, Ian Schrager and The Witkoff Group Announce Second EDITION Hotel in New York City.
New York, NY – 03 April 2015 – Marriott International together with Ian Schrager and The Witkoff Group, Winthrop Realty Trust, New Valley LLC and Maefield Development announced plans for a second EDITION hotel in New York City. Scheduled to open in 2017 and located in the heart of Times Square, the new hotel will follow the expected 2015 debut of Manhattan’s first EDITION property located in the landmark Clock Tower building at 5 Madison Avenue. EDITION is a first class, full service, luxury lifestyle brand within the Marriott International portfolio, conceived in collaboration with legendary hotelier Ian Schrager. Marriott International will manage the hotel under a long-term agreement.
Located at 701 Seventh Avenue, this will be the first hotel of this scale to be built in Times Square in over two decades. The world-class hotel design will feature floor to ceiling windows with unobstructed views of Manhattan in seventy percent of the property’s 452 guest rooms. The Times Square EDITION will be one component of a mixed use development which will feature 100,000 square feet of flagship retail, dining, entertainment and event space, as well an 18,000 square foot HD LED sign – one of the largest in the world. In keeping with the identity of EDITION, Mr. Schrager will lead all creative design and positioning for the hotel, as well as the entertainment programming offered within the property.
“New York is one of the most important destinations in the world, and we are delighted to have secured yet another iconic Manhattan location for our second EDITION hotel in the city,” said Arne Sorenson, Marriott’s president and chief executive officer. “Following the hugely successful opening of The London EDITION last year, we couldn’t be more excited about the potential for this brand,” said Mr. Sorenson. “The Witkoff Group is an ideal partner for a project of this magnitude and we are thrilled to be working together,” said Mr. Sorenson.
“We are excited to team up with Marriott International, Ian Schrager and our partners to complete the most significant new development in Times Square in a number of years,” stated Steven Witkoff, Chairman and CEO of The Witkoff Group. “In addition to introducing the extraordinary EDITION brand to Midtown, the project will feature a significant amount of prime retail space in one of the world’s most trafficked and successful shopping districts.”
“We are honored to be working with such extraordinary partners in creating a world-class, transformative project in Times Square,” stated Mark Siffin, CEO of Maefield Development. “It is a remarkable vision that could only be realized through the many talents and capabilities of Marriott, Ian Schrager Company, The Witkoff Group, and our entire JV team.”
Starwood Property Trust, Inc. and iStar Financial Inc. provided to the ownership group an $815 million construction loan for the mixed use project which includes the hotel and retail space. In addition, Starwood Property Trust, Inc. and Starwood Capital Group Global, LLC and its affiliates have an equity interest in the transaction. As additional collateral for the loan, Marriott International has agreed to provide the lenders with the right (upon an uncured event of default under the loan agreement) to require Marriott to purchase the hotel component of the property during the first two years after opening for $314.6 million (i.e., $696,000 per room).
Mark Elliott of Hodges Ward Elliott acted as a hotel advisor to The Witkoff Group and partners.
Most recently, The London EDITION opened to rave reviews and this month was awarded “Best Hotel, 100 or More Rooms” by Travel + Leisure as part of the magazine’s annual design awards. The modern and luxurious hotel opened this past September in the historic building formerly known as the Berners Hotel, located in the city’s Fitzrovia neighborhood. Future EDITION hotels are planned for Miami Beach (2014), New York City (2015), Abu Dhabi (2015), Gurgaon, India (2015), Sanya, China (2015), Bangkok (2016) and West Hollywood (2017).