Hyatt, Extell Team to Bring Upscale Park Hyatt Brand to NYC
- Nov 04, 2010
November 4, 2010
By Barbra Murray, Contributing Editor
The Park Hyatt flag will soon fly high in the New York City sky for the first time. Hyatt Hotels Corp. just revealed that one of its subsidiaries has created a joint venture with Extell Development Corp. to acquire a new hotel property upon its completion and stamp it with the renowned, upscale Park Hyatt label.
Park Hyatt New York will make its home across from Carnegie Hall at Carnegie 57, a 90-story mixed-use skyscraper that will carry the address of 157 West 57th Street. In addition to the 210-room hotel, designed by architect Christian de Portzamparc, the property will encompass 135 premier condominium residences and a list of top-of-the-line amenities that includes a meeting facility, 5,000 square feet of retail space, a bar and restaurant, a spa and a fitness center.
The partners’ ultimate acquisition of Park Hyatt New York will be subject to the completion of certain contractual achievements, the details of which have not been publicly released. As for the property’s current ownership, Aabar, an investment company controlled by the Government of the Emirate of Abu Dhabi, acquired a majority interest in the mixed-use project from Extell in 2009 for a reported sum of approximately $134 million.
The Manhattan hotel market is well on its way to regaining its luster, so Hyatt and Extell are hardly ahead of the curve in terms of developers preparing for an anticipated increasing growth demand, particularly in the luxury sector. As noted in Domain Properties’ most recent Manhattan Hotel Hospitality Market Report, “Luxury hotels are in highest demand–especially with international travelers who want to stay in.” Among the luxury properties that opened their doors this year are the 391-room Trump SoHo New York and the 214-room The Setai Fifth Avenue. The Trump building is a condo-hotel development and the Setai Fifth Avenue is comprised of both hotel guest rooms and residential condominiums, which are located in separate sections.
Despite a call that is growing louder, the luxury segment accounts for only 10 percent of the properties that are expected to come online in 2010 and 2011, according to HVS Global Hospitality Services’ 2010 Manhattan Hotel Market Overview. It seems there is a bit of catching up to do. The HVS report notes that luxury experienced the slowest growth in supply of all the hotel segments from 1990 to 2009, having expanded at an average annual compounded rate of 0.4 percent during that 10-year period.
Park Hyatt New York is scheduled to make its debut in 2012.