DLJ Real Estate Capital Partners has sold the Nine Orchard hotel on Manhattan’s Lower East Side for $92 million. The 113-room property at 9 Orchard Street was purchased by Austin-based MML Hospitality, according to a report from Commercial Observer. The sale price amounts to about $814,000 per room. Along with the hotel, MML is also acquiring its on-site restaurants.
MML Hospitality did not respond to requests for comment, and DLJ could not be reached by the outlet. News of the transaction was first reported in Emily Sundberg’s business Substack newsletter.
DLJ originally bought the landmarked building in 2012 for $5.3 million and undertook renovations before opening it as a hotel in June 2022. The former Jarmulowsky Bank Building is a 14-story structure with 71,000 square feet. Since opening, it has received recognition from Travel + Leisure and has hosted celebrity guests such as Zendaya and Tom Holland.
The sale marks DLJ’s second major hospitality move this year as it continues to sell assets in New York City’s hotel market. In January, Blackstone agreed to purchase the Kimpton Hotel Eventi in Chelsea for $175 million. That property opened in 2010 as New York City’s first Kimpton hotel and includes three restaurants, a large parking garage, and extensive meeting space near key city landmarks.
MML Hospitality previously focused on restaurants but expanded into hotels after partner Liz Lambert joined during the pandemic period. Last year, MML partnered with Riverside Resources to secure a $193 million construction loan for Sixth&Blanco, an upscale condo project in Austin that will include both residential units and a boutique hotel.
In other recent activity within Manhattan’s hospitality sector, Hawkins Way Capital acquired 99 Washington Street in the Financial District for $154.5 million from GF Hotels & Resorts following foreclosure proceedings against its previous owner.
“Emily Sundberg’s business Substack newsletter first revealed the transaction.”
— Holden Walter-Warner
