Hotel operator MCR acquired a ground lease to New York City's historic Gramercy Park Hotel, according to city records filed this week. The company said
Gramercy Park Hotel, built in 1924, was once a destination for the city's elite and brought in a host of rock stars and artists including David Bowie and Joni Mitchell during the 1970s. The Kennedy family lived in the hotel for a few months in 1927. Hotel guests had access to the neighborhood's exclusive, private Gramercy Park during their stay, according to Solil Management, which owns the ground beneath the building.
But Gramercy Park Hotel was mired in conflict during the pandemic when the building's former owner, a company owned by real estate tycoon Aby Rosen, stopped its lease payments to Solil Management, according to court documents. During the pandemic, Rosen let the building fall into disrepair, racked up city violations and sold off its furniture and art, according to Solil's complaint.
"We will return this beloved hotel to its original splendor as the jewel of Gramercy Park - one of the most magical and unique neighborhoods in Manhattan," Tyler Morse, CEO of MCR, said in a statement provided to The Messenger.
A judge ruled in 2022 that Rosen had to hand over the keys. Now, Solil is giving those keys to MCR for a 99-year lease, according to PincusCo. The hotel operator is the third biggest of its kind in the U.S., according to its website, with 150 hotels in 33 states. MCR's lease payment to Solil totaled about $50 million, according to The Wall Street Journal.
The company plans to renovate the hotel's lobby, restaurants, bar and 197 guest rooms in order to "bring back the magic and glamour of the five-star hotel," it said in its statement. MCR plans to open Grammercy Park Hotel by 2025.
Copyright protected material on this website is used in accordance with 'Fair Use', for the purpose of study, review or critical analysis, and will be removed at the request of the copyright owner(s). Please read Notice and Procedure for Making Claims of Copyright Infringement.
Added to Library on August 27, 2023. (690)
Log in to make a comment