Dive Brief:

• Hotel owner-operator MCR has acquired Gramercy Park Hotel in New York City and plans to reopen the property, closed since 2020, following renovations by affiliate Morse Development. 
• Gramercy Park Hotel will undergo a full renovation to the lobby, the first-floor restaurants and bars and all 197 guest rooms and suites. The property’s 7,000-square-foot rooftop bar, which MCR claims is the only venue with a view of Gramercy Park, will also be upgraded. 
• MCR’s acquisition and planned reopening of Gramercy Park Hotel extends the operator’s reach in New York, a market where it has several notable holdings. The announcement follows a slew of other hotel openings in the market this month.

Dive Insight:

MCR acquired the lease to Gramercy Park Hotel for roughly $50 million from Solil Management, which owns the hotel and land beneath it and foreclosed on the property last year, The Wall Street Journal reports. MCR has signed a 99-year lease on the property and plans to reopen it in about two years, according to WSJ. 

MCR declined to comment on the transaction beyond WSJ’s coverage and a company press release, in which CEO Tyler Morse said MCR will return the “beloved hotel to its original splendor.” 

Built in 1924, the 18-story hotel has been a chosen stay by many celebrities during its history, ultimately earning the property the nickname “The Glamercy.” According to MCR’s release, known celebrity guests of the hotel include John F. Kennedy Jr., Humphrey Bogart, Bob Dylan and bands The Clash, U2 and The Rolling Stones. 

Gramercy Park Hotel joins MCR’s $5 billion portfolio spanning 189 hotel properties, or 25,000 guest rooms, across 37 states. In Manhattan, MCR operates six other hotels, including the Sheraton New York Times Square, which the company acquired last year; The Lexington Hotel, acquired in 2021; The High Line Hotel; and the Royalton New York. 

Manhattan has seen several notable hotel openings this month, including the first-ever Tempo by Hilton hotel near Times Square, and the debut of Delta Hotels by Marriott. However, in the first half of this year, Manhattan’s lodging market saw a decline in year-over-year growth.  

In Queens, New York, MCR owns the TWA Hotel at John F. Kennedy International Airport, which it and Morse Development restored and reopened in 2019.