New Yorker Hotel resumes renting rooms.

Nearly 30 years after purchasing the New Yorker Hotel as a residence and offices for his followers, the Rev. Sun Myung Moon is in the process of converting a portion of the Art Deco building back to its former use.

Rooms have been open to the public since June 1st, but general manager Steve Honig admits they are still "rough around the edges. " For that reason, the hotel has only had a "soft opening" and has not yet embarked on a marketing or publicity program. Once source in the hotel industry believes this is also a way to keep a low profile so that the unions do not start picketing the hotel.

The hotel has enjoyed occupancy levels in the mid-60 percent range, however, by concentrating booking efforts on less fussy European and Oriental tourists. Even so, Honig was upset to find a British travel agency billing the 1929 tired grande dame as "five star" and charging a five star price. The Mobil Travel Guide lists the Carlyle as the only New York hotel with five stars.

"We're not claiming to be any stars, yet," Honig said, referring to their hope of bringing the New Yorker to a three-star level within the next year.

Nevertheless, he has broken off relationships with that tour operator after a honeymooning couple tearfully complained. "The new bride was heartbroken," Honig said. "If you embarrass yourself or a big tour operator is unhappy, very quickly they would hear yet another sleazy hotel his opened in Manhattan.

Agreed Richard Altman, manager of communications for the New York City Convention and Visitor's Bureau. "That's a danger, you don't want to create expectations because you set yourselves up for a fall."

Since June. the top nine floors of the 40-story New Yorker have been in the process of being converted to about 250 rooms, including eleven suites. Prices start at S85 a night and go up from there.

"It's pretty cheap for Midtown Manhattan," Honig agreed. Once they finish the current $2 million renovation and the front desk runs smoothly, Honig expects prices will rise.

To distinguish itself from the Unification Church, a new company called the New Yorker Hotel Management Company was formed as a commercial, taxpaying company to operate the hotel.

"It's a new company and we don't have to take on the burden of the whole building add we don't have to put the group in the situation of paying tax on the whole building," explained Honig.

As part of the restoration efforts, meeting rooms and break-out rooms have already been refurbished. In the future, Honig expects the hotel to take over more and more of the sleeping rooms and perhaps the meeting rooms as well.

A card key system, a new phone service and other amenities are expected to be in place soon as part of the renovations.

The New Yorker is the closest hotel to the Javits Convention Center and Honig is hopeful they can feed some occupancy from that, as well as nearby Madison Square Garden, Penn Station, and Herald Square shopping.

"Opening as a substantial hotel will bring brightness to the area," noted Honig. "There will be more people to spend money in the area restaurants. The police are happy about it." He observed the neighborhood has improved significantly between the 34th Street Partnership Business Improvement District and some other activity. "The neighborhood is becoming more reputable."

At first, Honig said, they brought in a number of people, including an experienced management company, to get the hotel up and running. Other real estate sources identified that company as Interstate Hotel Group of Pittsburgh, which denied they were now working with the New Yorker.

"We worked with them and we were more aggressive then they were," said Honig. "The head of the company said he just can't beat that speed because we are a passionate company. " While not all of the employees are members of the Unification Church, Honig said he is one of them.

"When this company took over, we made it a point to take down the Unification signage and literature, " explained Honig. "It's not the purpose to use the church to proselytize. We didn't come into this as a church operation. We came in as businessmen. There is a trust factor using church people. You have a better chance and hope you get the right people."

If a church member comes in as a guest they will receive a church discount but still must come in and register.

While they finally computerized the New Yorker a month or so ago, they haven't yet gotten as far as room service.

"It's a tough thing to do because you can't have a room service staff available for the people that need it, " he explained. In addition, the Japanese chain, Sono - Bana is still in possession of the restaurant and is just not the right food service for a hotel.