The Novotel Times Square hotel has embarked on an $85 million facelift that should be completed by September 2013, Crain’s reported. The work that recently began focuses on infrastructural improvements — namely work to the heating and cooling systems. Early 2013 is when guest room and public space renovations will kick off.
The aim is to cash in on higher room rates. Currently rates span $250 to $300 nightly depending on season.
As The Real Deal reported in February, a partnership of Apollo Global Management and Chartres Lodging Group purchased the hotel for about $94 million, and under the agreement, Chartres would take on a renovation of the 480-room property, as specified by the seller Accor Group, which continues to operate the hotel. In addition, the hotel will remain open throughout the renovation process.
Barry Nidiffer, senior vice president of development management at Chartres, declined to tell Crain’s how much the partnership paid for the hotel, located at 226 West 52nd Street between Broadway and Eighth Avenue. But he did say that purchasing it fit into the company’s strategy of buying hotels in need of some work to capitalize on the potential.
“We really liked the location,” he told Crain’s. “We saw an opportunity to add value.” [Crain's]