Orient-Express Hotels has entered into an agreement to assign its purchase and development agreements made with the New York Public Library to an affiliate of Tribeca Associates and Starwood Capital Group Global.

The assignee is an affiliate combining significant hotel and real estate development expertise. It will assume all the terms and obligations of the original contract made between Orient-Express Hotels and the New York Public Library, including the reimbursement of all previous payments made by Orient-Express Hotels and the assumption of all future payments. Tribeca Associates and Starwood Capital Group Global intend to build a world-class hotel on the site, which is across from New York’s Museum of Modern Art.

Paul White, President and Chief Executive of Orient-Express Hotels Ltd. said, “Whilst economic circumstances prevented us from pursuing this development, we are delighted to see the project going ahead. We are pleased to recover our deposits, which will further help strengthen our balance sheet.”

“We’re pleased that Tribeca Associates and Starwood Capital Group Global are moving forward on the terms of the existing contract, including the construction timetable. We will receive the full sale proceeds and are excited that we will have a wonderful new library in that location in the shortest time possible,” said Angela Montefinise, Public Relations Director of the New York Public Library.