IFA Hotels & Resorts to build $300 mln property in New York City

IFA Hotels & Resorts has made its first investment into North America by completing a $300 mln hotel deal to be built in central Manhattan with leading US real estate developer Related Companies.

The hotel market in New York is the number one in the US in terms of RevPAR. Occupancy levels for Manhattan hotels achieve approximately 85%, with average rates for the city continuing to record double-digit monthly increases. These rate gains have continued to soar, specifically in selected segments and locations, including hotels in the Times Square area as well as Midtown luxury properties.

Heralded as one of the most prolific and visionary developers in the country, Related is a fully integrated real estate firm with divisions specializing in development, acquisitions, finance, property management, and sales. Related has developed or acquired over $15 bln in real estate assets and has another $9 bln of development currently in the pipeline.

Related is widely known for creating some of the nation’s finest residential, retail and mixed-use developments including:  the $1.7 bln, 2.8 mln sq.ft. Time Warner Center which transformed Columbus Circle into New York City’s newest landmark; Grand Avenue, a multi-phase 3.6 mln sq.ft., $3 bln development spanning three city blocks in downtown Los Angeles, California; the $3 bln, 80-acre Snowmass Village Resort development in Colorado;  and the 144-acre CityNorth mixed-use development in Phoenix, Arizona.

The deal follows other Middle Eastern companies venturing into the highly lucrative American hospitality market, such as IFA HR partner Istithmar Hotels, who have acquired the Manadarin Oriental hotel and the Knickerboker Hotel in New York City.

Currently present in 15 markets throughout the Middle East, Europe, Africa, the Indian Ocean region, Asia and now North America, IFA HR is at the forefront of developing mixed-use real estate projects, including the Yotel chain of convenience hotels at London’s Heathrow and Gatwick airports.

IFA Hotels & Resorts listed on the Kuwait Stock Exchange in January 2006, with a market capitalisation of over US$ 1 bln. The company also listed on the South African JSE Limited (Johannesburg Stock Exchange) during 2006 with plans to list on other major exchanges in the future. In January 2007, the company invested in listed Thai developer Raimon Land.