Fortress Investment Group Closes $291 Million Financing for Sonesta Manhattan Hotel Portfolio

NEW YORK — July 23, 2026 — Fortress has provided $291 million in senior secured financing to support the refinancing and repositioning of a four-property hotel portfolio in Manhattan owned and operated by Sonesta International Hotels Corporation, the firm announced.

The loan covers 917 hotel keys spread across four upscale properties in Midtown East, one of New York City's most active lodging corridors for both corporate and leisure travelers.

The Portfolio: Four Midtown East Hotels

The four properties included in the financing are the Shelburne Sonesta Hotel, a 325-key hotel at 303 Lexington Avenue; the Benjamin Royal Sonesta Hotel, a 209-key hotel at 125 East 50th Street; the Fifty Sonesta Hotel, a 252-key hotel at 155 East 50th Street; and the Gardens Sonesta ES Suites, a 132-key hotel at 215 East 64th Street.

All four assets are situated near corporate office concentrations, major tourist destinations, and Grand Central Terminal, positioning them to serve both business and leisure demand segments.

Deal Structure and Strategic Rationale

The financing is structured as a senior secured loan and is intended to support both a refinancing of existing debt and a broader repositioning effort across the portfolio.

"We believe these properties are well-positioned to benefit from the ongoing recovery and long-term growth in New York City's lodging sector, and as such we're pleased to support Sonesta's planned repositioning by providing this financing," said Andrew DiMiero, Managing Director at Fortress Investment Group.

"By bringing Fortress' decades of experience in providing flexible financing and capital solutions for hospitality assets to this transaction, we believe this investment will offer strong risk-adjusted returns for our investors," added Steven Parrinello, Managing Director at Fortress Investment Group.

About the Parties

Sonesta International Hotels Corporation is among the largest hotel companies in the world, operating a global platform that spans a wide range of brands and market segments. The company has a significant presence in the U.S. lodging market and has continued to expand through strategic acquisitions and organic growth.

Fortress Investment Group LLC manages $54 billion in assets under management as of March 31, 2026, on behalf of approximately 2,000 institutional clients and private investors worldwide. The firm, founded in 1998, invests across credit and real estate, private equity, and permanent capital strategies.

Market Context

The transaction reflects continued lender interest in well-located, branded urban hotel assets as Manhattan lodging fundamentals have improved from pandemic-era lows. Hotel lenders have remained selective in deploying capital to urban assets, typically requiring clear operating history, brand support, and a credible business plan before committing to transactions of this scale. Repositioning investments in hospitality are typically pursued when owners believe physical or operational upgrades can support higher average daily rates and stronger long-term returns.

The Midtown East submarket's proximity to major corporate tenants and transit infrastructure has made it a focal point for hospitality investment activity as urban travel demand has normalized.

Sources

Fortress Investment Group — Official Announcement, July 23, 2026