The Crowne Plaza Hotel, which has been a landmark in downtown White Plains for more than three decades and underwent a $10 million renovation in 2013, will become a Sonesta hotel effective Dec 1.
The hotel is at 66 Hale Ave. in the vicinity of The Westchester shopping mall and The Source, which is home to The Cheesecake Factory, Dick”™s Sporting Goods and Whole Foods among others.
The hotel has 402 guest rooms, 17,000 square fee of event space, 17 meeting rooms, an indoor heated pool and parking garage.
The move is part of the Service Properties Trust”™s transfer and rebranding of 103 hotels from InterContinental Hotels Group plc (IHG), of which the Crowne Plaza in White Plains is one, to Sonesta International Hotels Corporation.
Service Properties Trust is a real estate investment trust, or REIT, managed by the operating subsidiary of The RMR Group Inc., an alternative asset management company that is headquartered in Newton, Massachusetts.
Service Properties Trust owns a portfolio of hotels and retail properties across the U.S. and in Puerto Rico and Canada. It is involved with 149 brands in 23 industries. The trust”™s properties are operated under long-term management or lease agreements. Crowne Plaza and Sonesta are two of the brands with which Service Properties Trust is involved.
The trust previously had sent notices of termination to IHG for failure to pay money, Â including rents due for July and August 2020 totaling $26.4 million, plus accrued interest. The trust said that when it did not receive any money and concluded that it could not expect to receive any payments from IHG in the future it decided to terminate the management agreements with IHG. That included the agreement covering the Crowne Plaza in White Plains. The relationship between Service Properties Trust and IHG began in 2003, according to the trust.
John Murray, president and CEO of Service Properties Trust, said, “We were unable to reach a mutually agreeable resolution to the defaults by IHG under our management agreements with them. Therefore, after a period of negotiation with IHG, we determined to terminate IHG and rebrand these hotels with Sonesta. Based on historical experience, we believe the current portfolio of 103 hotels may perform as well, or better, as Sonesta hotels post-conversion and once stabilized in their respective markets.”
Murray said that Sonesta manages 16 hotels for the trust that were rebranded from IHG in 2012, and their financial performance has improved by up to 14.4%.
“We also believe having these 103 hotels operated by Sonesta provides us with greater flexibility in managing our business through the current challenging market conditions,”™ Murray said. “For example, we expect that some of the transitioned hotels may be repurposed to an alternative use or sold in the future.
Cleaning and safety protocols put into effect by Crowne Plaza to help deal with the Covid-19 pandemic will be succeeded by Sonesta’s program called “Stay Safe with Sonesta.”
“As a Sonesta branded property, the hotel will continue to be a staple in our community,” said Monika Henry, general manager of the Crowne Plaza in White Plains. “All current employees are transitioning to the Sonesta brand and will be ready to welcome our guests on Dec. 1 with the warm smiles and service we are known for. Our guests will have the opportunity to experience the ”˜wow”™ service the brand offers.”
