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A little bit more info from Hyatt, which is also looking forward to the development...

https://www.fool.com/earnings/call-t...ference-c.aspx

Hyatt Hotel Corporation (H) Q4 Earnings Conference Call Transcript

Feb 14, 2019
Hyatt Hotels Corp

Quote:

Mark Hoplamazian -- President and Chief Executive Officer

...The last item I'd like to comment on is a recent development relating to the Grand Hyatt New York, a hotel owned by Hyatt. The hotel was originally opened in 1919, and it became the Grand Hyatt New York in 1980. Prior to 2010, it was the only hotel that Hyatt had in New York. And today, we have 14 hotels and two under development. The hotel is under a long-term lease and sits on top of one of the most important transportation hubs in the world.

We've been engaged in discussions with TF Cornerstone and MSD Partners, the owners of the air rights of Grand Central Station, which is adjacent to the hotel. The new development that they envision involves the construction of a new tower that would include a new Grand Hyatt Hotel. We believe participating in the redevelopment represents the highest and best use of the property for the long-term. And we are committed to working with the developers to move this project forward.

There are a significant number of approvals and other steps that need to be accomplished before a redevelopment could be possible, which we believe will take more than a year to work through. We expect site work for the redevelopment would not begin until 2021 at the earliest. Therefore, we expect to continue to own and operate the hotel through at least the end of 2020. Our current expectation is that we would ultimately sell the hotel and ground lease interest that we have to the development entity that would do the redevelopment and enter into a long-term management agreement for a new Grand Hyatt Hotel upon completion.

We welcome being part of such an important project with such experienced and accomplished developers. And we are also very excited by the prospects of a new world-class Grand Hyatt Hotel. Ours is an iconic location in the center of Manhattan. And we are committed to a long-term presence in that area. As you can imagine, this is a complicated deal given the nature and location of the property. And we are still working through details of various agreements with TF Cornerstone and MSD Partners. We will share additional details on the potential redevelopment as it evolves over time.

Quote:

Jared Shojaian -- Wolfe Research -- Analyst

.....you mentioned the Grand Hyatt. I appreciate the details there. But how are you thinking about that in terms of your longer-term disposition plan and allocation of capital? Would that be incremental to your $1.5 billion target? Would you consider recycling the proceeds into other hotels? And as you look at your entire portfolio of assets, are there any properties that you would consider not being available for sale, whether that's for strategic reasons, tax reasons, or anything else that you might be considering?

Mark Hoplamazian -- President and Chief Executive Officer

Thanks, Jared. With respect to the Grand Hyatt New York and how we think about it, the steps that we're taking right now are consistent with the overall direction that we've taken, which is to continue to move to an asset-lighter balance sheet. So, we looked at that opportunity in the context of several different factors. One being that the last -- the CAPEX profile for the property is driven in part by the fact that the last major renovation that we did was in 2011 at a cost of a bit over $120 million. And so, as we look forward, a CAPEX profile that suggested that this is an appropriate time for us to think about doing something different with the property.

As to how we ultimately will treat the proceeds from the sale, we will make that determination as we get closer to the time of actually selling the hotel. So, we've got a framing for our permit sell down commitment, which is at the $1.5 billion level that we described and talked extensively about last year. And we've also engaged in a number of recycling transactions. So, I think exactly how we end up treating those proceeds will be determined when we get closer to disposition.

Quote:

Shaun Kelley -- Bank of America Merrill Lynch -- Analyst

Excellent. Great. And then, just one other clarification was around the New York asset. And, again, appreciate the color that you did give us on that because I think we saw that in some of the New York real estate circles. So, the question I have on that is I think you mentioned -- it is a ground lease asset. But then, I think you also said that you may have some interest in the ground lease. So, could you just give us a little more color because we're undoubtedly gonna be trying to think about value there? And it'll depend a lot on whether or not it's ground leased or how much of the ground lease you own.

Mark Hoplamazian -- President and Chief Executive Officer

Okay. Excuse me. Given the transportation on which that property sits, all the land is owned by government entities, and we are the lessee of the land and owner of the improvements. So, that's the status that we have in that property. And our intention would be to sell the property, therefore, inclusive of the ground lease interests to the development group that's been formed to pursue this new redevelopment on the site. The adjacency of our site with -- it's contiguous with the Grand Central Station parcel has allowed the development group to take advantage of certain opportunities to make that total redevelopment and opportunity more efficient and effective than it might otherwise be. So, it's a bit of a special opportunity with this group that owns the air rights at Grand Central.

Shaun Kelley -- Bank of America Merrill Lynch -- Analyst

Right, because you can only use them if it's contiguous, I think is one of the key rules around air rights.

Mark Hoplamazian -- President and Chief Executive Officer

Well, there are some transfer abilities. It's not as powerful though as might exist if you're contiguous.

Shaun Kelley -- Bank of America Merrill Lynch -- Analyst

Okay. Great. Appreciate the color there. And look forward to hearing more about that.

The building is intertwined with Grand Central Terminal's concourse., and whatever retail they are planning should be the same.

https://a4.pbase.com/o12/06/102706/1...czHf8SR.m3.JPG

https://a4.pbase.com/o12/06/102706/1...hTuuNv4.m4.JPG

Grand Central is one of the most beautiful buildings in the city...the tower here should have a nice, grand lobby.

https://www.instagram.com/p/BsgdpIMBahC/

https://scontent-lht6-1.cdninstagram...NTM5NA%3D%3D.2

https://scontent-lht6-1.cdninstagram...NzMzOQ%3D%3D.2

that base would have been criminal.

Quote:

Originally Posted by Hudson11 (Post 8476302)

that base would have been criminal.

Looks like something that would be in Vegas, and older Vegas.

Quote:

Originally Posted by NYguy (Post 8476301)

https://static1.squarespace.com/stat...g?format=1000w

Thank god this isn't what we are going to get.

Those previous renderings are just architectural fantasy. When they built the Grand Hyatt they stripped the previous facade (and added some floors), so there is nothing remaining. It's basically a 1970's building.

I'm excited to see how this relates to Grand Central. This will basically be an extension of Grand Central.

Quote:

Originally Posted by Crawford (Post 8476606)

Not quite, what they did is more akin to 3 Columbus circle. They chiseled off any protruding stonework and gutted the base, then covered the whole thing in glass. At night you can see the same punch window locations through the glass and get a little bit of the feel of the old building.

I'm sure the thing will look like a wreck when they remove the glass (hopefully we get to see some of it as they demo).

Re: the renderings, the renderings show the building covered in a new stone/concrete skin installed on top of the original brick.

Quote:

Originally Posted by JSsocal (Post 8476655)

There's been at least 2 renovations since then, but the building has been pretty much the same. Some throwback articles...

https://www.nytimes.com/1975/05/04/a...-it-after.html

DEAL NEGOTIATED FOR COMMODORE

By ROBERT E. TOMASSON
MAY 4, 1975

Quote:

The Hyatt hotel chain and a real‐estate developer have reached agreement on a plan to purchase the Commodore Hotel from the bankrupt Penn Central Transportation Company and renovate the 26‐story structure into a luxury hotel.

Under the agreement between Mr. Trump and the Californiabased Hyatt Corporation, the developer has one year in which to complete the purchase, after which renovation must start within 18 months. After the renovation, Hyatt would operate the hotel.

Joseph Amoroso, executive vice president of Hyatt, said that the company was seeking to open the hotel, tentatively named the Hyatt Regency, by late 1978.

Quote:

Any sale agreement would have to be approved by the Federal District Court in Philadelphia, which is overseeing the reorganization of the railroad under Federal bankruptcy laws.

The agreement between Mr. Trump and Hyatt marked the end of a lengthy search by the hotel chain to obtain its first hotel in the city. Mr. Amoroso of Hyatt said the search included considerations of building a hotel on some available cleared sites or buying other existing hotels.

...The agreement calls for the stripping of the Commodore down to the support beams and a total renovation that will include what Mr. Trump said would be the largest ballroom in the city and 70,000 square feet of retail space.

Quote:

While the 59‐year old Commodore was never ranked as one of the city's more fashionable hotels, its large size and central location on 42d Street at Lexington Avenue next to ‘Grand Central Terminal made it a mainstay of the convention and tourist trade.

The Commodore is now the profitable of the four hotels here owned by the Penn Central and the one the trustees have been the most concerned with selling.

The best of the four is the Barclay Hotel, a 14‐story, 802‐room luxury hotel on Lexington between 48th and 49th Streets. “It pays for the other three,” commented Mr. Koskinen of Palmieri.

The others are the Biltmore, on Madison Avenue between 43d and 44th Streets and the Roosevelt, on 45th and 46th Streets between Madison and Vanderbilt Avenues.

https://www.nytimes.com/2011/01/12/b...s/12hyatt.html

https://static01.nyt.com/images/2011...att1-jumbo.jpg

By FRED A. BERNSTEIN
JAN. 11, 2011

Quote:

“Everything gold and shiny is going,” said Carol Bentel, a Long Island architect, referring to the reflective surfaces, including mirrored ceilings and highly polished metal columns, of the casino-style lobby.

...Their goal is to bring the hotel up to the level of a brand that in recent years has added luxurious properties in Europe, Asia, and the Middle East, surpassing the 30-year-old flagship.

“We have had some catching up to do in New York,” said Farley Kern, Hyatt’s spokeswoman. Ms. Kern said the primary goal of the renovation was not to increase occupancy — the hotel is consistently busy, he said — but to make it seem familiar to travelers who have stayed in some of the three dozen other Grand Hyatts.

Creating a luxury hotel in an existing building is a much more complicated task than building one from the ground up. The Manhattan hotel, built on the Commodore’s 1919 frame, has 138 different room configurations, according to Yvette Edwards, the director for sales and marketing.

Quote:

Some surfaces could not be removed, because, as do many 1970s buildings, the hotel contains asbestos. After consulting experts, Mr. Levison said, Hyatt “is leaving the asbestos undisturbed, which is the safest decision and presents no risk to guests.”

For that reason and others, the Bentel firm found ways to “reinvent existing materials rather than discard them,” he said. Existing wood walls will be stained, bronze columns will be painted and marble floors rehabilitated. The lobby is expected to be completed by August. By then, about 1,000 of the 1,300 guest rooms will also have been renovated. (Like the lobby renovation, the renovation of the rooms is proceeding in stages, a few floors at a time.)

Hyatt expects the renovation to allow higher hotel rates. (A recent Web search found rooms for January for $299.) But that depends on the market, and on whether guests embrace the new hotel in an old building.

But for the Grand Hyatt — where parts of the Commodore Hotel’s old masonry facade still hides behind the glass installed by Mr. Trump — such a strategy has worked before.

I've always hated this tacky monstrosity. Not surprised to find out was behind its glass and chrome.

Quote:

Originally Posted by Zapatan (Post 8465318)

The Chrysler building has had its time in the sun, it's not going anywhere. One Vanderbilt which is also much taller is pretty close too, although perhaps not quite as much.

2MSF for mixed use could pretty easily reach supertall territory but we shall see.

I agree... ok so it's the chrysler building... not everyone likes it THAT much... and im sure a much MUCH better design can be used for this new building... right? again... it's not a bad building... but come on now....

Quote:

Originally Posted by JMKeynes (Post 8478488)

Is there a rendering?

there is but for some reason they are not coming out in my post.... ugh.

Quote:

Originally Posted by The Best Forumer (Post 8478516)

there is but for some reason they are not coming out in my post.... ugh.

Can you post the link for where you found it?

The image links The Best Forumer just posted look like the exact ones NyGuy posted (post #45) showing the visions of two interconnected towers rising above and on either side of GCS. Not a serious proposal.

Quote:

Originally Posted by The Best Forumer (Post 8478381)

It's been imitated, but never duplicated around the world, more recognizable as a New York icon than the Empire State. Nothing else comes close (not including the ESB) as a skyscraper icon.

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