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Hotel Chelsea for sale — but who’s buying?

The owners of the Hotel Chelsea — a rock ‘n’ roll and literary landmark — put the property up for sale in October for the first time in more than 65 years.

The owners of the Hotel Chelsea — a rock ‘n’ roll and literary landmark — put the property up for sale in October for the first time in more than 65 years. They are asking about $90 million for the 12-story building, according to one anonymous source.

The Hotel Chelsea, where Marilyn Monroe and Arthur Miller lived as a married couple and Patti Smith and Robert Mapplethorpe also shared a room, is being marketed not just for its history but also for its yield-generating promise.

“Fully unencumbered hotel with powerful branding and management potential,” reads Eastdil’s summary listing, which touts the building’s “iconic status” and 800-square-foot rooms that a new owner could subdivide to increase the number of income-generating units.

Ian Schrager, the developer credited with inventing the boutique-hotel concept, estimated that the hotel could command rates of as much as $600 a night. The average rate for a junior suite on Dec. 10 is $349, according to bookings website Hotels.com.

The hotel includes 17,000 square feet of retail space located along 23rd Street and a brick rooftop terrace, according to marketing documents.

To buy or not to buy

Ian Schrager considered buying Manhattan’s landmark Hotel Chelsea and decided against an offer after viewing the 127-year-old property last month.

» “It’s a sexy asset with an incredibly sexy history and we felt obliged to take a look at it,” Schrager said in a telephone interview. “We took a pass.”

» Schrager and his business partner, the late Steve Rubell, started the boutique hotel trend in 1984 with the opening of the Morgans Hotel in New York. Schrager also opened the Delano Hotel in Miami, among many other famous names.

 
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