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October 7, 2022
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NYC’S FOUR SEASONS HOTEL IN STANDOFF WITH BEANIE BABIES MOGUL — AND COULD STAY
SHUT FOR YEARS

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Lisa Fickenscher


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Back to Reading
October 2, 2022 11:50am
Updated
October 2, 2022 9:47pm
Stocks Selloff to End the Week
Stocks selloff to end the week with investors looking for safe havens. A global
rout pushing the S&P 500 close to its June low. Kailey Leinz reports.

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MORE ON: FOUR SEASONS


 * FALL EQUINOX 2022: THE SURPRISING WAY YOUR ZODIAC SIGN WILL THRIVE


 * BIG EGO, BIG PALAZZO: CRITICS BASH BACHELOR BILL GATES’ ROMAN REAL ESTATE
   CONQUEST


 * CAPITAL GAINS: MADRID’S HOTEL SCENE IS MORE LUXURIOUS THAN EVER IN SPAIN


 * NYC’S FOUR SEASONS HOTEL EYES SPRING REOPENING AMID SPAT WITH LANDLORD

New York’s Four Seasons Hotel has remained conspicuously closed since the start
of the pandemic — and insiders say it risks staying shuttered for years because
of an increasingly bizarre dispute with the billionaire founder of the Beanie
Babies toy empire.

The luxury icon designed by architect I.M. Pei at 57 East 57th St. — whose
lavish Ty Warner penthouse suite was charging $50,000 a night before the hotel
was shuttered in March 2020 –has come to resemble an abandoned building.

The 54-story tower’s grand, Art Nouveau-inspired entryways are blocked off by
metal pedestrian barricades. The flags on the French limestone facade are taken
down and the front windows are covered with brown paper and ad posters.

That’s despite the fact that all of the Four Seasons’ luxury rivals — The
Ritz-Carlton, The Palace, the St. Regis, The Carlyle and the Mandarin Oriental
among them — reopened more than a year ago, and are reportedly doing solid if
not spectacular business as demand for luxury travel returns.

The entrances are barricaded and the once swanky boutique windows are covered
with brown paper.Helayne Seidman for NY Post The Four Seasons Hotel on E. 57th
St. has been closed since March 2020.Helayne Seidman for NY Post

Neighbors are skeptical of a claim on the Four Seasons website that the Midtown
Manhattan landmark is “temporarily closed as it is undergoing substantial
infrastructure and maintenance work that is expected to last well into 2022” —
language that has been in place since last fall, even as the hotel told union
reps it was targeting a spring 2022 reopening.

“I have never seen trucks parked outside the building hauling things out of it,”
said August Ceradini, who operates Eight and a Half, the swanky restaurant in
the lobby of 9 West 57th St., the nearby posh office tower. “There is not the
type of activity that suggests they are reconstructing something inside.”

In fact, sources told The Post that the hotel has been held hostage by an epic
contract dispute between the Four Seasons management company and Ty Warner, the
reclusive toy tycoon who owns the posh high-rise. At issue is the fact that the
hotel has been losing money for years — even before the pandemic struck,
according to property records.

Ty Warner bought the NYC Four Seasons property in 1999 for $275 million.Corbis
via Getty Images

Warner — a former door-to-door encyclopedia salesman who made a fortune
estimated at $3.8 billion by Forbes masterminding the Beanie Babies plush-toy
craze of the 1990s — has balked at the stiff upkeep fees demanded by the Four
Seasons, the sources said. In response, the hotel chain has rebuffed his request
that it adjust its fees to be commensurate with the hotel’s profitability or
lack thereof, according to the sources.

“It’s clear that Four Seasons and Ty Warner don’t see eye-to-eye on very much,
which makes it difficult to reach an agreement and move forward,” said a source
with knowledge of the situation.

Warner and the Four Seasons — which doesn’t own any of the more than 100 hotels
worldwide under its banner, instead operating them for different owners — have
been in talks for the past 18 months or so per a clause in their contract
covering dispute resolutions, keeping the secretive negotiations out of the
public eye. It’s not unusual for such cases to take years to resolve, industry
experts tell The Post.

The hotel was once the most expensive in Manhattan, charging well over $1,000
per night.Seth Gottfried

“It’s in limbo…he’s not selling the building,” another hotel insider said of
Warner, estimating it would be three to four years before the hotel opens. “He’s
not a distressed owner and Four Seasons has a management agreement and they are
at war.”

As travel returns to the Big Apple, industry insiders wonder whether the city’s
priciest hotel will ever regain its stature. As The Post previously reported,
the prolonged closure is fueling speculation that 78-year-old Warner has been
trying to wriggle out of his long-term contract with Four Seasons. Industry
insiders say that would likely be an uphill climb.

“The owner is encumbered with an agreement — he can’t throw them out and pick
Rosewood or Dorchester,” one hotel insider told The Post, referring to the
owners of The Carlyle and the Beverly Hills Hotel in Los Angeles, respectively.

“To me what’s more interesting is how can people have such an incredible asset
and have it just sitting there,” the source added.

Ty Warner became a billionaire in the 1990s from Beanie Babies.Getty Images

A representative for Ty Warner did not return calls and emails for comment. Four
Seasons Hotels and Resorts also did not respond to queries for comment.

Warner bought the property in 1999 for $275 million — just seven years after the
hotel opened at a reported $475 million cost to its developers. At the time, the
hotel was reportedly generating $30 million a year in operating income. But
business has had a bumpy road since, several industry insiders tell The Post.

“Ty didn’t like the way Four Seasons was operating the hotel, because he wasn’t
making any money and that was the genesis of the whole argument between them,”
said Ceradini, a veteran hospitality executive and former manager of the St.
Regis hotel. “From what I understand about Ty Warner’s personality, he won’t
stop until he gets what he wants.”

According to city records, the Four Seasons lost money in 2018 and 2019. Many
Big Apple luxury hotels saw hits to their profits during the years before the
pandemic amid rising wages and increased competition from new hotels, according
to Sean Hennessey, a professor at New York University’s Jonathan M. Tisch Center
of Hospitality.

“There are few things that make an owner more upset than when the property is
not earning any profits yet the manager is being paid handsomely,” Hennessy
said.

Ty Warner and Four Seasons Hotel and Resorts are said to be locked in a bitter
dispute over their contract terms.Tribune News Service via Getty I

Another problem, according to an industry source: “The Four Seasons has a lot of
rooms. They are big, and that’s challenging.”

Hotel employees have meanwhile sued Warner and Four Seasons, claiming they are
“purposefully stalling the reopening” to avoid paying millions of dollars in
unpaid wages and severance, according to the proposed class-action suit filed in
federal court in lower Manhattan in August.

196
What do you think? Post a comment.

A similar lawsuit was filed in February in Santa Barbara, Calif. by employees of
Warner’s still-shuttered Biltmore hotel — also a Four Seasons property — leading
some to speculate that Warner is waging “guerilla warfare” against Four Seasons,
according to a report by the Santa Barbara Independent. The 450 Biltmore
employees say they are owed up to $8 million in severance.

The hotel is shuttered “for reasons other than what they are presenting to the
plaintiffs,” the New York complaint alleges, noting that the hotel has undergone
multiple renovations over the years “and has never shut down to guests.”


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Filed under
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 * four seasons
 * luxury hotels
 * renovations
 * unions
 * 10/2/22

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