Lubert-Adler Partners

How to Buy a Manhattan Luxury Hotel, No Money Down

Dubai World’s troubles have hit the Big Apple. Istithmar World Capital, the private equity arm of the Dubai government-controlled holding company, funded $282m in to build the posh W Hotel in Manhattan’s Union Square in 2006, paying $50m in cash and borrowing the remaining $232m. On Tuesday, the building sold at auction for $2m.