$220M Hotel Project Revamps Library

NEW YORK CITY-Orient-Express Hotels Ltd. has signed an agreement to acquire the land and building of the Donnell branch of the New York Public Library, located at 24 W. 53rd St. here. Under the terms of the transaction, Orient-Express will pay the library $59 million in cash, in addition to the value of the library space, which the library will own and occupy. Orient-Express plans to build a 150-room luxury hotel, including a rebuilt “state-of-the-art” Donnell Library location within it.

The overall project is estimated at $220 million inclusive of the purchase of the library. Construction, which is subject to Orient-Express obtaining all necessary permits, is scheduled to start in 2009. The hotel is expected to open in early 2011.

The hotel will house dining, spa and wellness facilities, as well as expanded banqueting and dining space for the company’s existing restaurant and dining business, ’21′ Club. ’21′ Club backs onto the library premises in its location at 21 W. 52nd St. and the two buildings will be connected. The property will be marketed under a new ’21′ Hotel brand name. The original ’21′ Club will be preserved at its current location, with enhanced facilities.