Gotham Hospitality Group announces strategic plan.

The success of thinking "outside the box" has not only catapulted Bernard Goldberg's Gotham Hospitality Group into a leadership position in a hospitality market niche of its own creation, it is now enabling the company, which specializes in adaptive reuse, to take itself to the next level.

Gotham has gone into overdrive to capture the hot boutique hotel market in New York and possibly other East Coast and Midwest cities - as it opens the lobby and the first 70 of 211 rooms of the Rafael Vinoly-designed Roger Williams Hotel at 31st and Madison Avenue; commences renovation on the Hotel Grand Central; and begins the approval process for a major expansion of the Shoreham Hotel, all within 30 days.

To fuel this growth, Gotham may utilize the joint-venture capital of the Blackacre Capital Group real estate fund, a partner in their Grand Central Hotel project, a 155-room hotel located within a block of Grand Central Terminal, as well as seek sale, sale-leaseback or public debt or equity offerings of Gotham's four matured, stabilized hotel assets: the Hotel Wales and the Franklin, both on the Upper East Side; and the Shoreham and the Mansfield, both just off Fifth Avenue.

In the case of the Shoreham, Gotham will offer bidders the opportunity to almost double the size of the hotel through an agreement to lease the adjacent property, creating a great profit opportunity for the successful purchaser. The Shoreham has demonstrated an ability to effectively compete against pricier hotels in the immediate area, such as The Peninsula.

The hotels, which represent 356 keys including 105 suites, have a combined net operating income in excess of $8 million annually. Their successful sales will generate up to $100 million in equity for future development projects.

Gotham's strategy has been to acquire old commercial buildings in neighborhoods with potential and create an anchor that serves as a catalyst for urban improvement. Gotham restores noteworthy period historical details and incorporates striking design elements and exceptional art, while controlling costs. The company does not tear down walls to reconfigure, and it shops wisely for stylish but affordable furnishings. This approach, which has enabled The Gotham Hospitality Group to pass along savings to guests in the form of some of New York's most value-driven room rates, is, according to Goldberg, ready to "go on the road."

Recently, Gotham has entered into negotiations with developers in Chicago and Washington, D.C. to export its Gotham-style hospitality. This includes the concept of all-inclusive pricing, introduced by Gotham, which offers guests free breakfast, cappuccino all day, afternoon tea and evening desserts, free video libraries, free or discount parking, complimentary bottled water in guest rooms, and many other services that most hotels mark up or tack onto guest bills. The results have been occupancies and profits that have outperformed the already-hot New York more marketplace.

Gotham Hospitality Group has established a strong identity that it hopes to develop into a much larger collection of urban boutique hotels. But with reputation and quality as its hallmarks, Gotham does not plan to grow by entering into management contracts for properties developed by others, according to Goldberg.

With others jumping into the boutique market at a time when the hospitality industry is experiencing exciting growth, Gotham hopes to stay one step ahead with its aggressive new growth strategy.