Sam Chang Looks to Build His ‘Most Expensive Hotel’ Yet

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Sam Chang of McSam Hotel Group is planning to build “the most expensive hotel [he’s] ever built in [his] whole life,” the hotel developer told Commercial Observer.

SEE ALSO: Magna Hospitality Buys Garment District Hotel From Sam Chang for $274M

He is finalizing details on an agreement with Le Méridien for his hotel at 292 Fifth Avenue between West 30th and West 31st Streets. Chang said he received a commitment from the upscale hotel brand abut six months ago and hopes to finalize a deal in 30 days. Unlike the bulk of Chang’s properties, this one would be full-service, he said.

The Gene Kaufman-designed hotel will span 182 rooms over 21 stories with a “fancy restaurant” on the ground floor, Chang said. Construction has reached the roof, he noted, with the hotel slated to open in about a year. “It is a higher-end hotel for a higher-end location,” Kaufman said, adding, “We have a bigger budget for facade and for interior finishes than the other projects.”

Chang bought the site for $42.5 million in April 2017, as CO previously reported. He got a $26 million acquisition loan from Goldman Sachs, according to property records. The hotelier secured a $76 million construction loan from S3 Capital Partners for the hotel last October, per The Real Deal.

This property is good for a four- or four-and-a-half-star hotel, Chang said, as the location is more prominent than many of his others and “the land cost is too high,” to do otherwise.