This morning, McSam Hotel Group started construction of a seven-story, 100-plus-room extended-stay hotel adjacent to InterContinental New York Times Square, Commercial Observer has learned.
The 125,000-square-foot building at 322-326 West 44th Street between Eighth and Ninth Avenues has been designed by architect Gene Kaufman, McSam Hotel Group head Sam Chang told CO. He has proposed a TownePlace Suites by Marriott hotel at the location.
Nightly rates at the three-star hotel will be $225 a night, Mr. Chang said, and the project should be done in 18 months.
Mr. Chang partnered with M&R Hotel Group, a development company that purchases and builds hotels, to acquire the 35,400-square-foot through-block site through a 99-year triple-net lease with the owner, Manhattan Parking Group, as CO previously reported. The deal closed last fall at $775,000 a year in rent.
Meanwhile, The Real Deal has reported that Mr. Chang filed plans today for a 21-story, 400-room hotel at 350 West 39th Street following the filing of plans for a 25-story, 175-room hotel next door to it last Monday. Mr. Chang told CO that he wanted the neighboring sites on West 39th Street between Eighth and Ninth Avenues to combine them into one project, but he ended up giving Pestana Hotel Group a 99-year land lease at 340 West 39th Street. McSam is building that hotel for Pestana.