NEW YORK— In what will be the highest priced U.S. hotel transaction thus far in 2005, Strategic Hotel Capital LLC will officially close on its $440-million sale of the Essex House here tomorrow, according to a HOTEL BUSINESS® source. Acquiring the 74-year-old asset is Dubai Investment Group and Oxford Lodging Group, according to Cushman & Wakefield, Inc.’s mid-year “Select Significant 2005 U.S. Hotel Sales” rankings, which put the Essex House deal at the very top of the list in terms of sale price. Sonnenblick-Goldman Co. and Goldman, Sachs & Co. are assisting SHC with the disposition. The hotel, which contains a 501-room Westin and a 104-room St. Regis, also has 148 private residential condominiums. However, 139 of those residential units will not be included in the sale. Leading up to the sale, SHC sought to ensure that potential buyers would maintain the current character and use of the hotel. Dubai has indicated that it will maintain the high level of hotel service at the asset.
