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MCR Hotels acquires Gramercy Park Hotel lease for $50M

Firm plans to reopen Aby Rosen’s former property in two years

MCR Hotels Acquires Gramercy Park Hotel Lease for $50M
MCR Hotels CEO Tyler Morse and the Gramercy Park Hotel at 2 Lexington Avenue (Getty, Google Maps)

The Gramercy Park Hotel is being reborn without the involvement of Aby Rosen’s RFR Holding.

MCR Hotels acquired the hotel lease at 2 Lexington Avenue for roughly $50 million, the Wall Street Journal reported. The firm signed a 99-year lease at the property and aims to reopen the 200-key hotel in two years as a boutique luxury property.

In addition to reviving the hotel, MCR also plans to bring back Maialino, the ground floor restaurant run by Danny Meyer. The restaurateur’s Union Square Hospitality Group sued owner Solil Management in October for refusing access to the space.

Fourteen months ago, a judge ejected Rosen from the hotel lease at the behest of the Solil, run by the Goldman family. The removal of Rosen came after the property, adorned with works of art from Jean-Michel Basquiat and Damien Hirst, shut its doors in March 2020 and never reopened.

In April 2021, Solil sued to oust Rosen from the property, which was being stripped of furniture and artwork. In addition to RFR’s removal, Solil was seeking $80 million in damages. Solil’s attorney expressed frustration at the time because Rosen allegedly wasn’t allowing potential tenants to check out the space.

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RFR acquired the hotel alongside Ian Schrager in 2003, eventually taking full ownership in 2010. The ground lease on the property was set to last until 2078; Rosen held on for less than a third of the lease.

MCR, led by Tyler Morse, owns 25,000 hotel rooms across the country, including the High Line Hotel in Manhattan and the TWA Hotel at John F. Kennedy International Airport in Queens.

Last year, MCR acquired the Sheraton New York Times Square from Host Hotels & Resorts for $356 million. It was a tough break for the seller, as the 1,780-key hotel last sold in 2006 for $738 million.

— Holden Walter-Warner

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Aby RosenGramercy ParkGramercy Park HotelHotel MarketHotelsRFR HoldingSolil Management