Schrager Set To Expand In New York, Then Globally

NEW YORK— Ian Schrager’s newly opened Hudson Hotel won’t be his last Manhattan property. Known for creating hip, stylish hotels, Schrager told HOTEL BUSINESS® that he is seeking to develop a hotel in Harlem, as well as New York’s downtown and Upper West Side. “I am looking for buildings that have seen better days,” said Schrager. “This is where there is opportunity for development.” Schrager pointed to his former club, Studio 54, noting that the famous 1970s hotspot was actually an empty television studio before being transformed. Indeed, Schrager’s name is popping up all over the city. His company, Ian Schrager Hotels, owns and operates the Paramount, Morgans, the Hudson and Royalton in New York. The Barbizon, the Empire and Astor Place in Greenwich Village are under development. Ian Schrager Hotels remains a partner in the redevelopment of New York’s St. Moritz, said Schrager. “We sold it to Millennium Partners and retained a partnership,” he said, noting that that project will be flagged as a Ritz-Carlton, with high-end residential units. Schrager On The Hudson The 1,000-room Hudson, meanwhile, is much larger than Schrager’s typical boutique-style hotels. Located on 57th Street between Eighth and Ninth Avenues, the property was built in 1928 by J.P. Morgan’s daughter and used as a residence for young women. It housed Dutch soldiers during World War II, and was most recently headquarters for Channel Thirteen, the local public broadcasting television station. Ian Schrager Hotels bought the building in 1997 and put it through a three-year, $125 million renovation, with Phillippe Starck doing the design work. Among the many unique attributes of the property is a courtyard garden filled with trees, English ivy, lounging beds and crystal chandeliers. The hotel also has a series of rooftop gardens showcasing panoramic views of Manhattan and the Hudson River. What is also unique about the Hudson is its price point; a limited number of rooms start at $95 a night. “I like the bigger hotels and I like the lower end of the market better,” said Schrager. “It’s an area of the market where there is not a lot of inspiration. There is something really modern about going out and providing something in the lower end of the market that is available at an inexpensive price point. That makes it very democratic and appealing to me.” Schrager’s portfolio isn’t limited to the Big Apple. He’s got the Delano in Miami, the Mondrian in Los Angeles and St. Martins Lane and the Sanderson in London. Also under development are the Clift in San Francisco, the Miramar in Santa Barbara, the National in Miami Beach, and a hotel, apartment and urban entertainment complex in South America. The boutique-hotel operator shared his wish list with HOTEL BUSINESS®, noting that he is essentially looking to develop properties globally, in 24-hour gateways at a variety of price points. “I am bullish on Europe,” he said. “I am aggressively looking in California. I like Boston and Las Vegas.” Would he consider a hotel/casino in Vegas? “I would do a casino,” he said. “I feel that people are realizing that our customers would go to Vegas. “I want to be in Seattle, Chicago. Some of the usual suspects. I don’t exclude anything. What I am not interested in is one hotel in one city because I am a believer in hub-and-spoke management.” As for Europe, Schrager said he would love to do a hotel in Paris “but the London market is stronger, and there is more opportunity because of labor laws. Paris is sexy. I have looked at Paris but the general occupancies there are lower than I would like. I like cities in Germany, I like Amsterdam. I would like to have six properties in London because of the real estate taxes and insurance costs are lower than we are used to paying here.” With all of these projects, Schrager said he wants to geographically “be off the beaten path. “I don’t want to be on the 50-yard line. I am looking at areas where young people find apartments t