Leyad has acquired a stake in the Ink48 Hotel, located in New York City’s Hell’s Kitchen neighbourhood.

The Montreal-based company said the purchase price equated to $275,000 per room. Ink48 has 226 rooms. Based on the per-room price, the total price would be $62.2 million, but Leyad did not provide the actual price.

Leyad described the property as a distressed asset. Financial terms were not disclosed.

The deal marks Leyad’s first foray into the New York City market and its second hotel acquisition overall.

The agreement was structured as a 50-50 joint-venture with Capstone Equities, a private- equity firm based in New York City.

“The acquisition of Ink48 Hotel represents a significant step forward in Leyad’s vision to expand our presence in prime urban markets,” said Henry Zavriyev, CEO of Leyad. “New York City, with its unparalleled global influence and dynamic tourism and business environment, is an ideal addition to our growing portfolio. We are excited to partner with Capstone Equities, a leader in real estate investment, to bring our combined expertise to this unique property.”

According to Leyad, the $275,000-per-room price is considered one of the lowest closing prices for a renovated hotel in Manhattan in recent years.

“Leyad hopes to capitalize on current market upswings in NYC’s hospitality sector, as well as a growing tourism industry and is actively pursuing other distressed hospitality opportunities,” said Zavriyev.

Photo: CNW Group/Leyad