The Real Deal New York

Palace hotel gets $100M facelift

March 22, 2012 10:00AM

Less than a year after acquiring the 900-room New York Palace hotel for $400 million, Northwood Hospitality is set to begin a $100 million renovation of the property, USA Today reported.

The 55-story hotel, located at 455 Madison Avenue and originally opened as the Helmsley Palace in 1980, will remain open during the renovation as the construction will work its way from the 176 priciest rooms on upper floors, known as the Towers rooms and suites, down.

The renovation will emphasize showcasing the hotel’s views and aims to avoid a “trendy” look. Instead it will remain faithful to the classic look of the circa-1880s Villard mansion on which the hotel was built. The mansion space became available for lease last month.

Northwood President David McCaslin said the hotel is typically about 80 percent occupied, which is relatively low for Midtown hotels. He said he hopes the renovation, which begins this summer, helps improve that number. [USA Today]