Affiliates of Paceline Equity Partners, LLC, a Dallas-based private equity manager, today announced that they have acquired the Home2 Suites by Hilton New York Long Island City, an extended stay, all-suite hotel located in Long Island City, New York.
This recently renovated hotel is one of only three Hilton-branded extended stay properties in New York City and is viewed as an urban flagship-type asset by the brand. The acquisition represents Paceline’s second strategic partnership with Highline Hospitality Partners, following Paceline’s acquisition of the Sheraton Suites Atlanta Galleria, which was announced in June 2022.
Home2 Suites is considered Hilton’s most successful new growth and preeminent extended stay brand, with 560 properties open and nearly 100 properties in development. The 115-key Home2 Suites in Long Island City was developed in 2014 and is well positioned as a cost-friendly alternative to Manhattan hotels, particularly for extended stay customers more sensitive to nightly rates. Originally an industrial neighborhood, Long Island City was rezoned to residential and commercial use in 2001 and has since experienced rapid development to include several corporate headquarters. Today, Long Island City is one of the most desirable neighborhoods in New York City due to a proliferation of recently built luxury apartments, restaurants, and retail options all in close proximity to Manhattan. The ongoing development of Long Island City is expected to continue to drive leisure and corporate demand to the submarket.
“The Home2 Suites represents our first hospitality investment in New York City, and the tenth hotel in our portfolio. The hotel has capitalized on the strong leisure and business travel in the Long Island City submarket as the neighborhood has developed, highlighting the area’s strong recovery from the pandemic and diverse economic tailwinds,” said Sam Loughlin, Chief Executive Officer of Paceline.
“The transaction’s favorable tax abatement and assumable, fixed rate financing provide attractive cash on cash yields relative to the current tax and debt structures which are available in the market,” added Leigh Sansone, Chief Investment Officer of Paceline. “Paceline’s acquisition of the Home2 Suites by Hilton New York Long Island City highlights our ability to leverage our existing operating partner relationships and to identify attractive opportunities across all market environments.”
This acquisition follows Paceline's recent purchase of the Renaissance Dallas at Plano Legacy West Hotel, a full-service, upscale hotel located in the Legacy West development in Dallas.