Extell, Hyatt Partner on Luxury Hotel

NEW YORK CITY-Following its announcement earlier this week that it was franchising two new Hersha Development properties in Manhattan, Hyatt Hotels Corp. said late Tuesday it’s forming a joint venture with Extell Development Corp. on a new luxury property. Park Hyatt New York will be located within Extell’s forthcoming Carnegie 57, a 90-story mixed-use tower going up at 157 W. 57th St.

The JV between a Hyatt subsidiary and Extell will acquire the hotel upon its completion, subject to reaching certain contractual milestones, according to a release from both companies. With a design by Christian de Portzamparc, the 210-key hotel will include meeting facilities, a ballroom, a spa, fitness center and indoor pool as well as 5,000 square feet of retail. Carnegie 57 will also include 135 high-end condominiums.

When completed, the hotel will be one of only five Park Hyatts in the US; the others are in Chicago, the San Diego suburb of Carlsbad, the Colorado ski resort town of Beaver Creek and Washington, DC. Hyatt has another dozen planned, which will bring Park Hyatt’s global reach to 38 properties.

“Because New York is such a critical market, this hotel will be a milestone for the brand’s development in terms of both representation in a key market and global visibility, two key drivers of brand preference for guests and owners alike,” says Steve Haggerty, global head of real estate and development at Hyatt, in a release. “As we increase our presence in North America, we are committed to establishing the same awareness and reputation for Park Hyatt here that the brand’s iconic hotels and refined service have earned in other markets.”

The property is slated to open in 2012, and Colliers PKF Consulting’s John Fox told the Wall Street Journal the timing will be apt for debuting a luxury property. “To the extent that there is a recovery in the luxury business, which we’ve begun to see, they’ll be opening into a good period,” said Fox.

As reported by GlobeSt.com on Monday, Hyatt has signed a franchise agreement with Hersha Development Corp. onto two newly built Hersha properties. The Hyatt 48Lex is slated for an early 2011 opening; a property in the Union Square neighborhood will follow later next year. Additionally, Hyatt opened two properties under the Andaz brand earlier this year, and is engaged in a $130-million renovation of the 1,311-room Grand Hyatt adjacent to Grand Central Terminal.