DUBAI (AFP) – A Dubai government fund announced the acquisition of a landmark New York hotel for 285 million dollars, the latest in the emirate’s portfolio of US investments, a statement said.
W Hotel Union Square, a luxury hotel in Manhattan, was bought by Istithmar, which said that the deal is in line with its “strategy to invest in iconic properties in key gateway cities across the world.”
“The deal also amply reflects Istithmar’s investment strategy for the hospitality sector in the US market by targeting prized hotel assets,” it added.
The fund had spent in June 1.2 billion dollars buying a landmark 32-storey building in midtown Manhattan, one of the world’s most expensive property locations, just a week after paying 300 million dollars for a neighbouring prime Beaux Arts-style building.
In May the fund bought Loehmann’s, a 60-store US chain specialising in designer women’s and men’s apparel at discount prices, for 300 million dollars.
It also said it bought another building on 230 Park Avenue without disclosing the price.
Istithmar’s purchase of US interests follows the controversy that surrounded the acquisition of British shipping giant Peninsular and Oriental Steam Navigation Company earlier this year by Dubai Ports World (DP World), another government-controlled company.
A portion of the deal would have given DP World the right to operate six major US ports, including New York.
The deal was strongly opposed by the US Congress on security grounds, forcing Dubai government to agree in March to cede control of the US operations to a US entity in order to avert a standoff with a major ally.