Ian Schrager to build Midtown hotel

May 13, 2009 08:37AM

alternate textIan Schrager and 1414 Avenue of the Americas

Hotel developer Ian Schrager plans to turn the current Class B office tower 1414 Avenue of the Americas into a luxury hotel. Building owner Norman Sturner said that through expiring leases, the building will be virtually empty by 2010, when $100 million in development work could start. The 18-story building, at 58th Street, was built as a hotel and its penthouse roof deck is where rock group Kiss sometimes held parties. Sturner and investor David Werner bought the building in 2007 for $120.5 million, and planned to empty it out for residential or hotel development. But as room rates and hotel occupancy drop, does the city need another hotel? “You can get a room, and on selected nights get it for $100, and I never thought I’d see that rate again,” said John Fox of PKF Consulting. “Given where the market is right now, we probably don’t need [another hotel].”