The once-legendary Four Seasons Hotel in New York City, which has remained closed since the pandemic began, shows no signs of reopening with its billionaire owner amid a dispute with hotel chains over who should pay franchise fees.
The 54-story building on Manhattan’s 57th Street, known colloquially as Billionaire’s Row, nicknamed for its row of luxurious skyscraper apartment blocks, stands abandoned with metal barricades blocking the front entrance.
The hotel’s facade is covered with brown paper and advertising posters.
The fact that the Four Seasons hasn’t reopened its doors means it’s lagging behind its luxury competitors like The Ritz-Carlton, The Palace, The St. Regis, The Carlyle, and Mandarin Oriental, all of which were more than a year ago have reopened, the outlier is benefiting from the resurgence of luxury travel.
New York’s Four Seasons Hotel is still closed, more than a year after other luxury hotels in the city reopened
City Records describes how the hotel did not make a profit in 2018 and 2019
Four Seasons hasn’t reopened its doors, which means it’s compared to its luxury competitors like The Ritz-Carlton, The Palace, The St. Regis, The Carlyle, and Mandarin Oriental, all of which reopened more than a year ago outlier is
But the 78-year-old owner of the Four Seasons, billionaire Beanie Babies founder Ty Warner, is refusing to back down.
Four Seasons, which operates more than 100 hotels around the world under the flag, does not own them directly, instead relying on various owners to operate them.
The Four Seasons website states that the property is “temporarily closed as it undergoes extensive infrastructure and maintenance work that is expected to continue well into 2022,” but residents who work nearby said there are no indication that work is taking place inside.
The hotel first closed its doors to paying guests in March 2020 when it offered free accommodation to medical workers who are on the front lines fighting the coronavirus pandemic.
Owner Ty Warner, 78, who founded Beanie Babies and grossed his $3.8 billion fortune, is at odds with Four Seasons over paying franchise fees
Warner bought the building in 1999 for $275 million using funds from his Beanie Babies empire, which left him a $3.8 billion fortune
Warner, who earned an estimated $3.8 billion in the 1990s from the success of the Beanie Babies plush toy, is said to refuse to pay the upkeep fees that must be paid whether the hotel is profitable or not.
Warner has so far denied the request, instead proposing to adjust the fees based on the hotel’s profit.
“It’s clear that Four Seasons and Ty Warner are at odds, making it difficult to reach an agreement and move forward,” a source told the New York Post.
“Ty didn’t like the way Four Seasons was running the hotel because he wasn’t making any money, and that was the origin of the whole argument between them,” said August Ceradini, who used to run the nearby St. Regis. “From what I understand of Ty Warner’s personality, he won’t stop until he gets what he wants.”
The hotel was charging over $400 a night when it opened in the late ’90s, up from about $1,000 a night before the pandemic.
Interior views of the Four Seasons Hotel New York at 57 E. 57th Street in Manhattan
Guests at The Garden restaurant dined under African acacia trees, smoothed by warm sunlight
Ty Warner’s 4,300-square-foot penthouse suite will cost $50,000 a night. The suite offers 360-degree views of the city from four glass balconies and is considered one of the most expensive in the world.
But city records describe how the hotel still didn’t make a profit in 2018 and 2019.
So far, the back-and-forth between Warner and the Toronto hotel group has lasted 18 months, but the negotiations are being conducted in secret and have not been made public.
Adding to the bizarre nature of the dispute, Warner owns the entire skyscraper but seems happy to just wait it out.
Warner bought the building in 1999 for $275 million with funds from his Beanie Babies empire. At the time, it was said to bring in $30 million in annual revenue, with the hotel earning the label of “NYC’s Most Expensive Hotel.”
Ty Warner’s 4,300-square-foot penthouse suite will cost $50,000 a night
The suite offers 360-degree views of the city from four glass balconies and is considered one of the most expensive in the world
The architectural and artistic masterpiece soars 52 stories into the sky and features four cantilevered glass balconies
“It’s in limbo … he’s not selling the building,” another source told the Post, estimating the dispute could drag on for at least four more years.
“He’s not a distressed owner and Four Seasons has a management agreement and they’re at war. The owner is burdened with an agreement – he can’t throw it away and pick Rosewood or Dorchester,” the source explained.
“What’s more interesting to me is how people can have such an incredible asset just sitting there.”
“Few things irk an owner more than when the property isn’t making a profit but the manager is handsomely paid,” said Sean Hennessey, a professor at NYU’s Center of Hospitality.
In August, former hotel employees sued Warner and Four Seasons in federal court, alleging they “deliberately delayed reopening” to avoid paying millions of dollars in unpaid wages and severance payments.
Warner was sentenced to two years’ probation in 2014 for tax evasion. He maintained a secret offshore account in Switzerland but managed to avoid jail time for his philanthropic exploits, a judge said at the time.
Four Seasons Hotels have not responded to requests for comment.
Warner was sentenced to two years’ probation in 2014 for tax evasion. He maintained a secret offshore account in Switzerland but managed to avoid jail time for his philanthropic exploits, a judge said at the time.