Budget-stay kingpin Sam Chang planning 25-story Garment District hotel

He bought West 39th Street site in January for $22M

Sam Chang and 338 West 39th Street
Sam Chang and 338 West 39th Street

Sam Chang plans to build a 25-story, 175-key hotel on a Garment District development site where he began evicting manufacturing tenants earlier this year.

The veteran hotelier filed a permit application Monday to build a nearly 60,000-square-foot hotel at 338 West 39th Street, near Ninth Avenue. He bought the 12-story factory building on the site in January for $22.4 million, records show.

The application lists Barone Management, developer of the Dream Hotel in Long Island City, as a partner. Chang and Barone, headed by Scott Barone, have partnered on several projects in the past.

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Roughly 30 hotels have popped up in the Garment District over the past decade as manufacturing businesses have left the area, and possibly no other developer has cashed in more on the demand for budget-rate rooms than Chang’s Great Neck-based McSam Hotel Group.

He currently has a handful of sites under development, including a 35-story Holiday Inn at the corner of Eighth Avenue and 39th Street, a 252-room hotel at 326 West 37th Street and a 406-key project at 334 West 36th Street, a site he bought for $50.8 million.