NEW YORK—Strong confidence the lodging market here would be back on its feet after being hit hard in a post-9/11 environment has proved valid for at least one Big Apple hotelier, whos backed his belief with a $22 million property renovation, convinced doing his part to revive his piece of the hotel landscape brings overall benefits to the city’s hospitality industry—and America. Hy Arbesfeld, president of San Carlos Hotel Inc., is now looking toward May 2003 when his investment in rehabbing the 147-room San Carlos Hotel at 150 East 50th St. will be tested in the marketplace as the midtown hotel reopens for business. Arbesfeld and his family have held a majority share of the hotel since acquiring the circa-1920s property in 1972, but have been on the New York hotel scene since 1961, when they acquired the Bedford Hotel at 118 East 40th St. Although his 50th St. property was doing well, three years ago he started considering a total revamp, “because all the older hotels, particularly the well-located hotels, were doing major renovations, upgrading, making a better hotel and seeking a higher rate. That was happening all around me,” Arbesfeld told HOTEL BUSINESS®. “I felt I had to do the same.” Arbesfeld ran into some challenges, such as having to change architects and engineers, but nothing as daunting as the impact from the terrorist attacks on New York in September 2001, which sent the metro lodging market into a temporary tailspin, and put numerous construction projects on hold. “I would not let the terrorists win, because that’s exactly what they wanted. They wanted to disrupt our economy here, affecting the lives of our people and the livelihoods of people,” stressed Arbesfeld. “I would not let that happen. Absolutely not.” The hotelier said his architect told him of the three projects he had going in the city, one was totally abandoned, one was put on hold and only the San Carlos went forward. “And I didn’t have to. I had not yet signed a contract with the general contractors. But I didn’t hesitate for a moment. I think it was an angry reaction to 9/11 and also was a tremendous confidence in America, and particularly New Yorkers. I’m a born New Yorker and I knew we’d survive this, overcome it, and strengthen from it. There wasn’t the least doubt in my mind.” One challenge Arbesfeld did not face was financing. “We had the funds,” he said matter-of-factly, noting he advanced 100% of the moneys via San Carlos Hotel Inc. to implement the renovation. “I did not seek financing,” he said. Although the building is approaching 90 years, it is not landmarked, which gave Arbesfeld the advantage of renovating both the inside and outside. The exterior was steam-cleaned and an existing courtyard entrance, which was not in sync with the building line, was eliminated to align the entryway with the line, and now gives the lobby an atrium element. “So the first two, three stories of the building are changed,” noted Arbesfeld. The interior of the hotel was gutted creating 147 guestrooms that include 83 deluxe studios (275 square feet), 20 executive suites (440 square feet), 42 one-bedroom suites (530 square feet) and two penthouse suites (530 and 700 square feet), which feature terraces and woodburning fireplaces. Anticipated rack rates for the levels are $375, $425, $475 and $750, respectively. “Everything’s new,” said Arbesfeld, who noted costs escalated somewhat when decisions were made to make everything state-of-the-art. Toward that, all guestrooms will now have 27-inch flat-screen television sets, complimentary high-speed Internet access, two-line telephones (one cordless) with dataport adaptor, cable television with premium channels and on-demand movie service, electronic laptop size inroom safes, a pants presser, and other contemporary amenities such as microwave, coffee maker iron and ironing board, honor minibar and serving pantry with refrigerator. The rooms also were reconfigured. “We had rooms with many large close
New FF&E was part of San Carlos Hotel renovation