|NEW YORK - June 3, 1999-- Ian Schrager, in partnership with
NorthStar Capital Investment Corp. ("NCIC"), announced today that Ian Schrager
Hotels LLC ("ISH") has acquired the historic Clift Hotel in San Francisco
for $80 million from Grosvenor Clift Associates, financing for which was
provided by DLJ Mortgage Capital, Inc., through its subsidiary Column Financial,
Inc. Entities controlled by Ian Schrager have managed the Clift Hotel since
The Clift has an unparalleled location at 495 Geary Street, in the heart of San Francisco's Union Square/Theater District and close to the Financial District and the Moscone Convention Center. ISH plans to spend in excess of $25 million, financing for which will also be provided by DLJ, to redevelop and re-introduce the Clift in the grandeur of its original creation. Renovations are scheduled to begin in the spring of 2000 and will be completed within one year. The beloved Redwood Room, a historic Art Deco restaurant, will be carefully restored. Based upon the hotel's original plans in 1915, Mr. Schrager will reconfigure the current key count of 326 to its original 370. Upon completion, the Clift will be reinvented as the next generation of a five-star luxury hotel for modern people, one that promises to be a stylishly chic new gathering place for the people of San Francisco that is quite unlike anything else.
Mr. Schrager has enlisted Philippe Starck, one of the world's most acclaimed designers, to design and redevelop the Clift as a world-class property. Mr. Starck is responsible for the internationally hailed design of four of Mr. Schrager's other properties: Royalton and Paramount in New York, Delano in Miami Beach and Mondrian in West Hollywood. Currently, he is at work on St. Martins Lane and Sanderson both in London, scheduled to debut in September and December, respectively.
"We are extremely excited about this major acquisition," said Mr. Schrager, chairman and chief executive of ISH. "The Clift is one of the most renowned hotel sites in the world. We plan to create something new that will maintain the property's historic tradition while adding something spectacular. Not only will the Clift make a wonderful addition to our portfolio of premier hotel properties but it will increase our presence in California with properties now in Los Angeles, Santa Barbara and San Francisco. We look forward to starting renovations on the Clift that match its great history and fulfills its even greater potential."
W. Edwards Scheetz, a board member of ISH and co-chairman and chief executive of NorthStar, said: "The potential of this property coupled with Ian Schrager's unique vision makes this acquisition a very attractive investment for the company. San Francisco is the fourth largest metropolitan area in the US and major hub for national and international business, a perfect location for an Ian Schrager hotel. Furthermore, the transaction dramatically underscores the great power of the NorthStar-Schrager partnership."
NorthStar Capital Investment Corp. was established to continue the opportunistic real estate-related investment activities of David T. Hamamoto, formerly co-head and a partner at the Whitehall Funds at Goldman, Sachs Co., and W. Edward Scheetz, formerly a partner at Apollo Real Estate Advisors. Since its capitalization in December 1997, NorthStar has invested in excess of $2 billion in more than 25 high growth real estate investments.
Mr. Schrager serves as chairman and chief executive officer of ISH, which was formed in February 1998. ISH has developed five hotels that the company owns and operates under the Ian Schrager brand: Morgans, Paramount and Royalton in New York; Delano in Miami Beach, and Mondrian in Los Angeles. Five additional hotels, also owned and operated by ISH, are slated for redevelopment - and reinvention - also under the Ian Schrager brand. These are St. Moritz, Empire and Barbizon in New York; Clift in San Francisco, and Miramar in Santa Barbara. In addition, the following hotels, which ISH also owns, are currently closed during the construction phase, and will reopen under the Ian Schrager brand: St. Martin's Lane and Sanderson in London which will open in September and December 1999 respectively and Henry Hudson in New York scheduled to open in fall 2000. ISH is working on a number of other property transactions that are in various stages of development.
Mr. Schrager will vigorously pursue his strategy of developing multiple properties at various price points in international gateway cities in North America and abroad. Mr. Schrager is one of the most successful and prominent figures in the lodging industry today. Since he and Steve Rubell first introduced the concept of the "boutique hotel" to the world with Morgans in 1984, Mr. Schrager has been acclaimed for creating uniquely theatrical and cutting-edge properties, each of which is characterized by a profoundly original vision and design aesthetic that captures the spirit of the times and reflects popular culture.
|Also See:||Schrager spreads love for New York / Kthy Seal / July 1998|