Hyatt, Hersha Franchise Two New Properties

NEW YORK CITY-Hyatt Hotels Corp. and Hersha Development Corp. said late Friday they’ve signed long-term franchise agreements on two newly built hotels in Manhattan. The two new hostelries, both scheduled to open next year, continue Hyatt’s expansion momentum in the city as it progresses on a $130-million renovation of its existing Grand Hyatt New York.

First of the new properties to open will be the Hyatt 48Lex, reportedly the first ground-up hospitality project to arrive in Midtown in more than a decade. An early 2011 opening is slated for the 116-key property at the corner of East 48th Street and Lexington Avenue.

The other new Manhattan property to carry the Hyatt flag under its agreement with Hersha will be a 175-room hotel at the corner of Fourth Avenue and East 13th Street in the East Village near Union Square. It’s slated for a fall ’11 opening. Both new properties will be managed by Hersha as well, via Hersha Hospitality Management.

Over the past year, Hyatt opened two new Manhattan properties under the Andaz brand, on Wall Street and Fifth Avenue, respectively. The boutique chain had a soft opening for the Wall Street property in January, while Andaz Fifth Avenue opened in July.

“Hyatt is committed to growing its presence in Manhattan and we are delighted that Hersha is playing such a significant role in this growth,” says David Tarr, Hyatt’s SVP of real estate and development, in a release. “Their deep New York City experience brings additional value.”

At the Grand Hyatt New York, adjacent to Grand Central Terminal, 150 redesigned rooms will be available to guests starting this month, says Hyatt. The redesigned guest rooms and suites will become available floor by floor until all 1,311 keys are renovated, the Chicago-based company says. Also slated to debut in November is the 6,000-square-foot New York Central, the property’s new bar and restaurant.