The Real Deal New York

Durst Fetner, Schrager split at Herald Square development site

June 13, 2012 09:30AM

Contrary to previous reports, Ian Schrager will not bring a Public Hotel to Durst Fetner Residential’s Herald Square development site, the New York Post reported. A Durst spokesperson said the partnership “couldn’t make the financials of the deal work” for 855 Sixth Avenue, at West 30th Street, and that the developer is in talks with other hotel brands instead. A design won’t be finalized until a hotel is on board.

Reports first emerged of a Schrager-Durst Fetner partnership at the site in November, and Schrager was expected to operate a 250-room hotel on the bottom 16 floors of a 56-story tower designed by Cook + Fox Architects.

Though this deal fell through, Schrager told the Post that he is in contract for another site, though he wouldn’t reveal the location. The boutique hotelier said he is not targeting the luxury market because he thinks guests are still price sensitive, and so he’s looking for deals where he’d spend between $400,000 and $500,000 per room.

Finally, Schrager said he thinks the Bowery is ripe for hotel development. [Post, 1st item]