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Bucking terrorism, recession, and increased competition, Barry Sternlicht opens the Times Square W.





A bathroom in the new 57-story W Times Square, the first hotel to open in Manhattan since September 11. The hotel, with interior design by Yabu Pushelberg, aims to merge Schrager/Starck hipness with the more practical concerns of business travelers.
What does W stand for? Don't ask. A representative of Starwood Hotels & Resorts Worldwide, which owns the stylish hotel chain, will start chanting alliterative words like warm, welcoming, whimsical, even wired. A better question is why the W Times Square made its debut on December 27, when so many Americans were avoiding air travel. It was New York's first new hotel since September 11--and couldn't have opened at a worse time.

Consider that January is habitually the travel industry's slowest month. Then consider that months before the terror attacks put the hotel business through a meat grinder, it had been tenderized by an economic downturn. In December the New York Times reported that annual 2001 occupancy rates for New York hotels were expected to average 72.5 percent, a 12.1 percent decline from the preceding year. Factoring in both continued fallout from September 11 and the planned arrival of five new Manhattan hotels, projected rates for 2002 are 68.5 percent.

So what was Starwood's chairman, Barry Sternlicht, thinking when he rushed to launch his sixteenth W--fifth in New York, and first on the West Side? "I thought it would be a good morale boost for the city," he says. His message? "We're still here, we're healthy, and we're moving forward."

Upstairs (above) and downstairs (below) at the Blue Fin restaurant. Partnering with successful restaurateurs is part of the W's scene-making strategy.
In early January the 57-story hotel, at the corner of Broadway and 47th Street, was roughly 60 percent full--not bad, considering that it looked about 90 percent done. One of the designers, Glenn Pushelberg, of the Toronto firm Yabu Pushelberg, was still mentally adding benches to the lobby's furniture, and construction workers were shuffling around the unfinished basement nightclub, the Whiskey. Meanwhile the hotel's seafood restaurant, Blue Fin, was stuffed (at least on the ground floor; the second floor still awaited surfacing materials). Chatter ricocheted off the wood floors and floated up to the double-height ceiling; you couldn't hear yourself compliment the chef. This was Times Square, after all. On Wednesday, matinee day in the theater district, playgoers were mixing with the finance and media types who work in the area's newly built towers. And somewhere in there, maybe, actual hotel guests were eating, too.

W's success depends on attracting a scene, but that's only half of what the hotel chain does best. All of the properties combine the social charisma of boutique hotels with the business-oriented services and incentive programs offered by more conventional chains (including Starwood's own Sheratons and Westins). Ian Schrager is credited with inventing arty urban lodgings for hipsters; he began in the 1980s with Morgans, an East Side Manhattan hotel designed by Andrée Putman. But Sternlicht advanced the concept to jibe with the New Economy. Starting in December 1998 with the W New York, on Lexington and 49th Street, he conceived chic hotels for people between 20 and 45 who need to work as vigorously as they unwind. W guest rooms have desks that are a minimum of six feet long, and they offer cordless phones as well as landlines. And because this clientele apparently believes that the shorter the route between a conference call and a Cosmopolitan the better, a bar is parked in every lobby (the "living room," in W speak).

A nighttime view of Times Square from one of the rooms.
Photo by James Baigrie
Taking a page out of Schrager's book (some say ripping out whole chapters), Sternlicht revitalized the concept of the hotel as spectacle--a backdrop for preening and flirting. Staffers, known as "cast members," are culled from acting and modeling agencies. Recently Kenneth Cole was recruited to dress them; both men and women at the W Times Square wear striped gray pantsuits and leather jackets in an ensemble that can go from reception desk to audition if necessary. But when W was criticized for poor service--a typical complaint leveled at boutique hotels, whose employees often have better grooming than people skills--it imposed a "whatever, whenever" policy. Now guests are invited to submit their whims 24 hours a day. Perhaps to curtail more feverish impulses, the literature suggests filling the tub with chocolate milk.

The ground-floor elevator lobby (above)--equipped with an indoor waterfall--and the seventh-floor reception lobby (below) are designed to feel like sanctuaries from the chaos of Times Square.
"Most people think, 'Boutique--I'm going to be sitting on a hard chair, sleeping on a rock, with no lighting and a phone I can't take five feet with me,'" Sternlicht says. He's trying not to banish the word but redefine it in terms that suggest comfort, efficiency, and the personal touches a hotel chain can easily bestow if it has a computer system that recalls which guests like massages and then automatically books the appointments. "I think the difference between us and Ian is we're building a brand."

Brand-building demands time and cash; and business travelers can't be depended on when the economy takes a dive. Two of W's dominant markets are New York and Northern California, where clients in technology, media, and advertising lost jobs or cut back expenses when the Internet bubble burst. And then the Twin Towers collapsed. In late September Starwood, which owns nearly 750 hotels in more than 80 countries, announced layoffs of 10,000 employees, representing 8 percent of its workforce. Conditions were so bad that Sternlicht approached government officials to ask that hotel companies be part of the federal package to bail out the airlines. The debt-rating company Fitch downgraded Starwood's bonds in January to below investment grade in anticipation of continued travel industry declines, especially among business travelers, who make up 90 percent of the company's market.

For a short time after the attacks Sternlicht even considered converting the W Times Square building into offices for displaced downtown businesses. A former Planet Hollywood Hotel that never had a chance (the company went bankrupt shortly before its planned December 1999 opening), it was wired for high-speed Internet access and inured to hard luck. Star-wood had already filled all 650 rooms of its Sheraton Manhattan hotel with Lehman Brothers employees, uprooting beds and shipping in desks; the Planet Hollywood building would need even less of a retrofit.


 

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