The Manhattan hotel scene is no stranger to drama. Going back to the late 1800s, the Waldorf Hotel and Astoria Hotel opened across the street from each other because of a family dispute. Eventually, both hotels were razed to make way for the Empire State Building and the parties joined forces to build the Waldorf=Astoria (note the equal sign. That was purposeful) on 5th Avenue.
While not as juicy as a family feud between the Astors, there’s another hotel drama unfolding in Manhattan that will determine the fate of two of the most famous luxury hotels in the area.
We’ll jump into the story where the Four Seasons Hotel New York has been closed since March 2020, when New York City shut down to visitors. Many of the hotels reopened by September 2021, which was around the time when Broadway welcomed vaccinated and masked audiences.
However, some properties remain shuttered, including the Four Seasons on East 57th St. It’s not due to a lack of demand, as luxury hotels like the Ritz Carlton, Peninsula and boutique hotels in Manhattan have roared back to life. According to the Four Seasons website, the closure is for renovations.
Thank you for your interest in Four Seasons Hotel New York. The Hotel remains temporarily closed and is undergoing substantial infrastructure and maintenance work that is expected to last well into 2023
But it’s no secret the closure is because of a dispute between the Four Seasons and Ty Warner, the property’s owner. And if you’re wondering, yes that’s the same Ty Warner of Beanie Babies fame. The sales of those bajillions of bean bag toys allowed him to buy the Four Seasons in 1999 for $275 Million, and he’s not happy about the return on investment.
Sources told the Post that Warner is upset about the high cost of running a hotel given its apparent lack of profitability, and that they’ve been unable to reach an agreement over the last 18 months.
While Four Seasons is negotiating with Warner, they’re adding pressure by throwing their hat into the ring to manage another iconic NYC hotel, The Plaza.
The Plaza is owned by Katara Hospitality on behalf of the Qatari government. The hotel is currently managed by Fairmont Hotels but there’s a competition between Four Seasons and Raffles to become the new manager. Four Seasons needs an option if it can’t come to an agreement with the owner of its current property, but Paris-based Raffles Hotels & Resorts, which is moving its headquarters to the Big Apple, would love to keep the property under the Accor brand umbrella.
The simple resolution to the story would be for Four Seasons and Ty Warner to make a deal and reopen the hotel. That would allow Raffles to take over management of The Plaza from Fairmont and reopen the parts of the hotel which have remained closed since the pandemic.
But if Four Seasons decides to cut ties and take over management of The Plaza, it leaves the Accor Group without a signature property in Manhattan, which it obviously wants to maintain in its worldwide portfolio of hotels.
It seems like this story will end up with one party going like this.
Isn’t that how every story ends in New York City?
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1 comment
Fascinating stuff.