Posted on: 06/28/2017 Posted by: Dan Howarth Comments: 0

The Morgans Hotel in New York, which developer Ian Schrager turned into the world’s first boutique hotel, is being sold and converted into high-end micro apartments.

Real-estate agency Kash Group and investment firm Shel Capital are finalising a $41 million deal for the 17-storey, 117-room hotel at 237 Madison Avenue, according to The Real Deal.

They plan to turn the 1920s building into 90 condos, with hotel rooms or corporate housing spanning three lower floors, and a restaurant at ground level.

Each of the homes will measure around 300 to 325 square feet (28 to 30 square metres) and cost between $700,000 and $750,000 (£540,000 to £580,000).

A three-floor penthouse with an undisclosed price tag has also been proposed. Work on the transformation is due to commence as soon as the deal closes.

Schrager renovated the building in 1984 with French designer Andrée Putman to create first in the Morgans chain, which was acquired by the SBE Entertainment Group late last year.

He was credited with starting the trend for boutique hotels – smaller hotels with upscale accommodation, in fashionable urban neighbourhoods – with the project.

Last year, the influential hotelier and developer said that micro apartments could help cities retain their diversity.

More recently, he told Dezeen that the hotel industry is under threat from Airbnb, which his latest venture – the Public hotel in New York’s Bowery neighbourhood – is aiming to counter.

New York’s scarcity of space is resulting increasingly smaller accommodation. The city’s first micro-apartment tower, designed by nArchitects, was completed in February 2016, while a micro hotel with tiny rooms by AvroKO opened in December.

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