The Real Deal New York

Hotel Chelsea owner buys El Quijote restaurant

Nearly century-old spot will be tied to the property when it relaunches as a boutique hotel
June 18, 2014 05:30PM

The storied El Quijote restaurant is staying put following its sale to the Hotel Chelsea’s owner.

Chelsea Hotels CEO Ed Scheetz plans to incorporate the 84-year-old Spanish dining spot on the property’s ground floor into the Hotel Chelsea when it relaunches as a boutique hotel, DNAinfo reported. The company declined to disclose the selling price.

“The overall goal is to retain the signature [classic Spanish] look and feel of El Quijote while maintaining its authenticity and history, which are already woven into that of Hotel Chelsea,” a spokesman told the news site.

Chelsea Hotel will make mechanical upgrades but plans to keep current owner Manny Ramirez on board and preserve both the menu and atmosphere, according to the spokesperson.

For years, El Quijote has benefitted from a sweetheart lease that locked in below market-rate rent and contained a provision that bars the property’s owner from renting additional ground floor space to a competing restaurant.

Ed Scheetz took control of the Hotel Chelsea last year following a split with the Chetrit Group. [DNAinfo]Tom DiChristopher