New Yorker Hotel

Open for business┬áWhen the New Yorker Hotel embarked on a $65 million renovation, it chose to stay open for the renovation. General manager Kevin Smith shares the secret of its success with Linda Seid Frembes. Finding a good hotel room in New York City used to be like tracking BigfootÔÇöyou had heard of such a thing but had never really seen it. The accommodations in New York have come a long way now that the New Yorker Hotel has completed its $65 million renovation project. The classic Art DecoÔÇôstyle 43-story structure built in 1929 has once again been transformed into a modern mixed-use building.ÔÇ£We started talking about planning for the renovation in 2002. ItÔÇÖs counterintuitive to do renovations during a downturn, but it makes sense because thereÔÇÖs always a block of rooms that are open,ÔÇØ says Kevin H. Smith, executive vice president and general manager of the New Yorker Hotel since 2003. Smith is a financial executive who has been on the board of directors of the hotel since 1994 and became managing director in 2000. ÔÇ£During a downturn, youÔÇÖre not displacing any guests and losing revenue.ÔÇØSmith points out that many properties undergoing a renovation choose to close down completely to speed the process. Instead, the hotel remained fully operational during the two-year renovation process. ÔÇ£We did it a few floors at a time. As a result, there were no layoffs and we generated revenue the entire time,ÔÇØ he says.Currently, the New Yorker has completed renovating the hotel rooms. The building includes five floors of student dorms and eight floors of offices, with the top 21 floors for the hotel. Post-renovation, the hotel now has 912 keys. ÔÇ£We knocked down a number of walls to make small rooms bigger,ÔÇØ says Smith, who also notes that his property offers 25,000 square feet of meeting space and an 8,000-square-foot redecorated lobby that evokes the feel of the 1930s.When the New Yorker Hotel was built in 1929, the property had 2,500 rooms and was the largest hotel in the city. Smith explains that it was early in I-beam construction, and the construction team put in more columns than necessary, resulting in more rooms. What hasnÔÇÖt changed is the central location: advantageous proximity to Penn Station, Madison Square Garden, MacyÔÇÖs department store and the Jacob Javits Convention Center, as well as a short walk to the subway. ÔÇ£Prior to the renovation, weÔÇÖd been looking at the proposed development of Hudson Yards. There were many plans in place, but some havenÔÇÖt even started yet, such as the renovation of the Garden and the Javits Center. We didnÔÇÖt want to be solely responsible for the development of the West Side, but now weÔÇÖre leading the uplift of the neighborhood,ÔÇØ says Smith.The key to the renovation was hiring a project management company with experience renovating hotels. The New Yorker worked with Phb Catalyst Group of New York City. ÔÇ£Staying open adds a new level of complexity. It was quite a management feat. In addition to our 500 employees, we also had 300 construction workers at the hotel. There are a total of 18 elevators, with 12 for passengers and six for service. It required a lot of coordination,ÔÇØ explains Smith.About $40 million of the budget was for rooms and public spaces, and guests will surely notice the new carpets, wallpaper, fixtures and furnishings. So far, the hotel has removed over 2,000 window air-conditioning units and decommissioned over 2,000 radiators. The hotel is realizing cost savings by installing a central chiller plant in the basement. Smith adds, ÔÇ£WeÔÇÖll have payback in 10 years with a 20-year lifespan on the chiller. We also installed seven miles of copper piping to bring central HVAC to every roomÔÇöall in all at a cost of an additional $17 million.ÔÇØInstead of window units and radiators, each room has a quiet fan coil unit located in the closet or somewhere else in the room. The hotel also offers free WiFi Internet access with 44-megabyte bandwidth coming into the building. Each room also has a flat-panel high-definition LCD display. ÔÇ£The customer-centric renovations have to do with comfort and presentation,ÔÇØ says Smith. ÔÇ£The new HVAC allows us to change the look and feel of the rooms to a more modern presentation, while still keeping the sense of Art Deco.ÔÇØThe remaining $8 million of the $65 million budget was not customer-centric but rather an investment in infrastructure, such as repairing the roof and repointing the fa├ºade. In fact, the entire front of the hotel on 8th Avenue has gotten a facelift, including new signage, stonework and a new marquee. Stonehill & Taylor served as the project architect, while M&T Bank provided the project financing.┬á To minimize the noise and disruption as much as possible, the renovation proceeded three floors at a time. ÔÇ£We found it was best to manage guest expectations at the desk while we were knocking down walls and core drilling through floors in the stairwell,ÔÇØ says Smith. ÔÇ£We posted a schedule of when and where drilling would occur each day. We kept the guests informed because there is nothing worse than a negative surprise. People are very forgiving if you communicate the plans in advance.ÔÇØSmith also points out that, now that the renovation is complete, the New Yorker Hotel is in a good position with its newly remodeled property, despite a downturn in the economy. ÔÇ£We have a small loan-to-value ratio. WeÔÇÖre a three-and-a-half- to four-star property that can price below the competition and still make money. Our rates are flexible, and we offer guests brand-new rooms with modern amenities,ÔÇØ says Smith, who uses his finance background to keep an eye on business management and at statistics like revenue per available room.While the New Yorker may have a new face, its main goals remain the same: to be known for the best customer service in the city and to offer the best work environment for its employees. ÔÇ£We provide a good culture of service, so it will be naturally conveyed to guests,ÔÇØ adds Smith. Employee luncheons and employee-of-the-month recognitions are regular occurrences. Smith also hands out the General Manager Appreciation Pin whenever he hears that someone has gone above and beyond in helping a guest. Once an employee collects five silver pins, he or she can move up to one gold pin.Smith concludes, ÔÇ£WeÔÇÖve created a property that has no excuses. It now comes down to service.ÔÇØ┬á