HEI Hotels & Resorts signs $240M refi with Smith Hill Capital for hotel in Murray Hill

HEI Hotels & Resorts through the entity Dk Wgc Fee Owner LLC as borrower signed a refi loan with lender Smith Hill Capital through the entity B-Smith Hill Debt Opportunity (L) B, LLC valued at $240 million for the Westin New York Grand Central hotel building (H1) at 214 East 42nd Street in Murray Hill, Manhattan.
The deal closed on September 26, 2025 and was recorded on October 10, 2025. The prior lender was Apollo Global Management which held debt that had an original loan amount of $150 million.The property has 517,158 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $464 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on January 9, 2019, for $277.7 million. The signatory for HEI Hotels & Resorts was Anthony Rutledge .

Prior sales and revenue

The 517,158-square-foot property generated revenue of $101.9 million or $197 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Murray Hill has 517,158 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 150 feet and is 197 feet deep with a total lot size of 29,625 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $161.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $4,500 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial renovation certificate of occupancy on August 10, 2018. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Murray Hill, The majority, or 54 percent of the 11 million square feet of commercial built space are elevator buildings, with office buildings next occupying 22 percent of the space. In sales, Murray Hill has had very little sales volume relative to other neighborhoods with $89.7 million in sales volume in the last two years. For development, Murray Hill has 2.2 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 30 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 905,013 square feet of the 905,013 square feet. The two identified owners are Hei Hotels & Resorts and Durst Organization.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 905,013 square feet of built space are hotel buildings, with office buildings next occupying 42 percent of the space.

The borrower

The PincusCo database currently indicates that Hei Hotels & Resorts owned at least one commercial property in New York City with 517,158 square feet and a city-determined market value of $138.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Manhattan.

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