Political Economy Essay

 

The Hudson, which opened on October 3 2000, is one of latest additions to Ian Schrager's hotel empire. Located on 58th Street between Eight and Ninth Avenue, Hudson is the ultimate merger of design and fashion as it lies at the spearhead of the trend of boutique hotels. Situated near the Theater District and Times Square, the hotel lies in the essentially residential neighborhood of northern Clinton/Hell's Kitchen. The establishment boasts 825 rooms that go for as little as $95 ( a promotional rate of course) but the real draw exists in the hotel's public space areas as tiny rooms are compensated for by the luscious vision of architect cum interior designer of Philippe Starck.

Ian Schrager, who was the co-creator of New York's infamous Studio 54, is the owner and operator of many of the most famous boutique hotels around the world, including the Sanderson in London, the Delano in Miami and the Mondrian in Los Angeles. He is regarded as the inventor of the boutique hotel, a term used to describe a hotel with a unique atmosphere and a high-concept design. The trend distances itself from the impersonal feel of corporate chain hotels such as the Marriot or the Hilton. Schrager has the financial backing of the Northstar Real Estate Investment Firm and was quoted as boasting about the"50% profit margins" of his ventures, although it should be noted that this was before the September 11 attacks.

The building that is now the Hudson was erected in 1928 and was initially used as the American Woman's Association Clubhouse. During the Great Depression, this 26-story, 423,000 square ft. structure was converted into a hotel; not surprisingly it was called the Hudson Hotel. Before Schrager acquired the building, it served as an office and production for Channel 13 on the first 10 floors and as rent controlled residential units on floors 11 through 24.

The $ 80 million renovation of the building undertaken by Ian Schrager Hotels involved redoing the façade, installing a new ground floor escalator, converting the office space into public space and turning the residential units into hotel guestrooms. The Ackman-Ziff Real Estate Group was crucial in arranging acquisition, construction and mezzanine financing for the Henry Hudson Hotel renovation project. The Group was instrumental in convincing lenders that leasehold and condominium interests in the property would not stand in the way of the Henry Hudson's transformation, thus assuring investors that the political economy welcomed Ian Schrager's venture and ultimately winning over vital capital investment.

Although the Hudson's opening created somewhere between 250 to 300 jobs (based on an employee's estimate), the concept of the boutique hotel does not contribute immensely to urban prosperity or the social well being of the surrounding neighborhood. This is because the Hudson boasts of four distinct areas for customers and local visitors to lounge and drink in as well as a successful restaurant, the Cafeteria. Although it does attract tourists with money to spend to the area, it seems unlikely that they would walk down to Hell's Kitchen to sample ethnic cuisine when there is a hip restaurant right in their hotel. Of course, the Hudson does contribute to urban revitalization by adding to the pull factor of the neighborhood but one should be aware that the destination is not the surrounding neighborhood, it is the space inside Hudson itself that is so coveted.

In fact, certain neighborhood residents may even find that Hudson has too much of a pull factor especially as it attracts drunk partygoers that are drawn to the "in" place to be. There was a slew of residential complaints when Hudson opened, as the lines gathering in front of the hotel were often loud and rowdy in a manner ironically reminiscent of Studio 54. This once sleepy neighborhood had been transformed into celebrity heaven and naturally the jet set were allowed first dibs. Thus, lines grew outside, and nearby residents complained of lines blocking the entrance to their homes and excessive noise preventing them from sleeping. When Jennifer Lopez decided to bring her private party to the outdoor Garden area while proceeding to turn up the music and shake her booty, locales filed noise complaints with the NYPD and the cops proceeded to quiet the party that night.

In December of 2000, members of Community Board 4 put together a petition containing 250 signatures from upset neighbors. However, community unrest came during the first four months of the Hudson's inception when there was a tremendous rush to see Schrager's latest creation. These days the guest lists are no longer to be found at the entrance, instead the bouncers cordon off certain areas that are off limits unless a reservation has been made or if you are a "somebody".

It is worth noting that elite establishments such as the Hudson add to the lack of social interaction in public areas. Hudson does not contribute to the creation of the vital neighborhoods that Jane Jacobs writes of. Besides, this is clearly not the objective in the exclusive service industry of boutique hostelry. The instant the client enters the building, he is whisked away from ground level by the neon lit escalators. The Hudson is an instrument for private gain, and does intend to be the cornerstone of a safer neighborhood. It is above all a site conspicuous consumption where those with sufficient income to afford $12 drinks come to see, and as they're led to believe, be seen because Hudson is quite simply the hip place to be.

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