Peninsula, Westbury Hotels Close For Renovation Projects
<B> Peninsula, Westbury Hotels Close For Renovation Projects</B>
By Glenn Carter
While a number of Big Apple hotels have been opening and reopening, two major high-end business properties will be closing for renovations.
The Peninsula and Westbury, located in Manhattan, will be closed during the next several months for top-to-bottom improvement projects.
The decision to close "was not an easy one, but in the end we decided it was best not to disturb any guests by doing a floor-by-floor job," said Michael Schneider, director of sales for the Peninsula.
The Peninsula, set to reopen Nov. 1, recently sent out letters to corporate travel managers, agencies and individual guests. Schneider said he will continue to call on buyers to update them on the progress of the improvements, explaining that in the months before the closing, "we organized tours of nearby hotels for regular clients to see which one they might like to use while we were closed," referring them to sister properties which are members of Leading Hotels of The World and Preferred Hotels.
One business travel buyer, however, is concerned that the improvements will boost her corporate rate. Cherie Joy, corporate travel manager for ICI in New York, said she has used the Peninsula in the past and was "surprised they are shutting down because I can't see anything wrong with it." Joy plans to book rooms when the property reopens--depending on the rate increase.
"The whole problem with these renovations," she said, "is that an account like mine is middle of the road and is not high volume so we don't get the best rates. If the hotel raised rates to where they are just not doable--even if my people are used to it and love the property--it will lose us."
The Westbury, meanwhile, plans to hike rates by no less than 65 percent when it reopens sometime next year, said executive vice president Philip Wood. Indeed, the 202-room property is targeting high-end business travelers by raising its current room prices from the low $300s to the high $400s.
"We will probably have the same companies as clients, but at a different level of executive," Wood said. "We aim to be one of the top end boutique hotels in the city."
The Westbury sent out mailers to 2,500 top clients, including many corporate accounts, and alerted them to the closing as well as offering help with reservations and other services. Plans for the Westbury, however, are subject to review by the New York City Landmarks Preservation Commission.
Schneider, meanwhile, said he hopes the current New York market stays the way it is, but that even if there is a downturn, "we would rather have a hotel that is in good shape."
Improvements will include upgrades of the public areas, restaurants, function rooms and guestrooms. The hotel's popular spa will remain open to members throughout the renovation period.
A major reason behind the decision to refurbish the Peninsula is the increasing competition between hyper-luxury properties like the renovated St. Regis and the new Four Seasons.
For its part, the restoration of the Westbury, formerly a Forte hotel, is the result of its acquisition by U.K.-based real estate developer Chelsfield, which is working to make its mark in the hospitality business.
"We are committed to restoring this rather faded grand dame of hotels to its former glory as one of the premier hotels in New York,"said Peter Armstrong, president of Chelsfield U.S. "We will undertake a complete restoration of the exterior and a comprehensive renovation of the interior to provide our guests with five-star amenities and services commensurate with the world's most renowned hotels."
Work will include reducing the guest room count to 202 rooms, the wiring of each room with fiber optic technology for access to multiline phones, modems and high-speed faxes; enlarging some of the 1920s-style bathrooms, and expanding and upgrading heating, air conditioning, plumbing and elevator systems.
Several of the hotel suites will include working fireplaces, landscaped terraces, and views of Central Park and the Manhattan skyline.
Because the renovation involves rebuilding plumbing and heating systems, "it's too wrenching" to keep the property open, Wood said.
Like the Peninsula, the Westbury is referring regular guests to other members of Leading Hotels of the World and Preferred Hotels.
As for the period in which it will be closed, the Westbury will continue to offer service staff, such as a concierge, to handle limousine rental and theater tickets for regular guests in an effort to retain them as clients.
Even if the local hotel market eventually dips, Wood said the property will retain a high volume of business.
"Our parent company is in the real estate business and has invested for the long term," he said. Also, because of our location in the heart of New York's premium shopping district, we expect to do very well in our retail operations.