In the 19th century,
New York Central Railroad lines north of
Grand Central Depot in
Midtown Manhattan were served exclusively by
steam locomotives, and the rising traffic soon caused accumulations of smoke and soot in the
Park Avenue Tunnel, the only approach to the depot. After a fatal crash in 1902, the New York state legislature passed a law to ban all steam trains in Manhattan by 1908. The New York Central's vice president
William J. Wilgus proposed electrifying the line and building a new electric-train terminal underground, a plan that was implemented almost in its entirety. The old Grand Central Depot was torn down in phases and replaced by the current Grand Central Terminal. Passenger traffic on the commuter lines into Grand Central more than doubled in the years following the terminal's completion. The terminal spurred development in the surrounding area, particularly in
Terminal City, a commercial and office district created above where the tracks were covered. A 1920
New York Times article said, "With its hotels, office buildings, apartments and underground Streets it not only is a wonderful railroad terminal, but also a great civic centre." The Lexington was one of several hotels developed in Terminal City, along with other hostelries such as the Barclay,
Commodore,
Roosevelt, and
Biltmore.
Development and early years Tishman Realty & Construction had purchased the site at the southeast corner of Lexington Avenue and 48th Street, then quickly resold it to the Lexington Hotel Corporation, in the late 1920s. General
J. Leslie Kincaid, the president of the
American Hotel Corporation (parent company of the Lexington Hotel Corporation), announced in May 1928 that he would begin demolishing existing structures on the site and construct a hotel at a cost of $6.5 million. S. W. Straus & Co. placed a $4.5 million mortgage loan on the hotel that month. At the time, many hotels, commercial structures, and office buildings were being developed on Lexington Avenue north of 42nd Street. The Hotel Lexington opened on October 15, 1929, one of several hotels to be built in Midtown Manhattan during the 1920s. From the outset, customers were banned from tipping the waitstaff at the hotel's bar and restaurant; instead, a 10 percent
gratuity was applied to all guests. The Lexington was one of 33 hotels in the American Hotel Corporation chain. The restaurant space in the basement was initially unoccupied until 1932, when the Silver Grill opened there. The National Hotel Management Company, operated by the
New Yorker Hotel's manager
Ralph Hitz, acquired the Lexington Hotel in March 1932. Reliance Property Management, headed by Frank W. Kriedel, was placed in charge of the Lexington's day-to-day operations. and two groups were created to represent the hotel's bondholders. the corporation was reorganized the next year. The hotel's Silver Grill was one of the most popular entertainment venues in a New York City hotel by the mid-1930s, offering live music during lunch and dinner. The Silver Grill was renovated into the Hawaiian Room in mid-1937. John M. Stoddard, who had been elected as Hotel Lexington Inc.'s president, appointed Charles E. Rochester as the new manager. Within a month, hotel officials began planning an outdoor cafe, The Hawaiian Room was extremely popular upon its opening, and it remained so in the early 1940s. Although Rochester became the president of Hotel Lexington Inc. in 1946, he continued to manage the Lexington.
1950s to 1970s Louis Schleiffer acquired the hotel at the end of December 1954. As part of the agreement, Rochester was to continue operating the hotel, and general manager George W. Miller remained in his position. At the time, the hotel contained 801 rooms and was assessed at $3.75 million. Before Schleiffer could finalize his purchase, real-estate investor
Lawrence Wien agreed to buy Schleiffer's contract for the hotel. Wien planned to take title to the hotel on May 2, 1955, he planned to lease it to a syndicate led by Saul Hertzig. In turn, Hertzig planned to spend $250,000 renovating the guestrooms. After Wien took title that May,
Massachusetts Mutual Life Insurance placed a $3.25 million first mortgage on the hotel. Rochester resigned from his position as the hotel's manager that July. Hotel Lexington Associates, which owned the hotel, announced in 1963 that it would replace the hotel's manually operated elevators with automatic cabs. To fund this renovation, the owner received a $140,000 mortgage loan on the property. After the Hawaiian Room's business declined sharply during the
1966 New York City transit strike, the room was closed temporarily, and the room was permanently shuttered after a fire the same year. The
Chateau Madrid club moved into the Hawaiian Room's space in late 1968; the space could accommodate either 600 or 700 guests. Charles Hertzig served as the hotel's director until he died in 1968. By the 1970s, community college students were trying to encourage business at the Lexington Hotel. The Chateau Madrid was sold in 1974 but continued to operate at the hotel into the late 1970s.
1980s to 2000s Indian conglomerate
Tata Group acquired the Lexington in September 1981, and the
Taj Hotels chain began managing the hostelry. During this time, the Lexington operated as a mid-priced hotel. The New York Playboy Club relocated to the Chateau Madrid's former space in 1983, but the club was only housed at the hotel for a short time. In December 1999,
Radisson Hotels announced that the hotel would operate as a Radisson franchise and would be renamed the Radisson Hotel New York-East Side.
Highgate Oxford Hospitality took over the hotel's operation. The Lexington underwent a $518 million renovation, which was finished in 2001; several rooms were further renovated in 2004.
LaSalle Bank placed a $100 million mortgage loan on the building in 2007. DiamondRock obtained a $170.4 million
syndicated loan from a consortium of banks in March 2012. The hotel left the Radisson chain in September 2012, becoming an independent hotel known as The Lexington New York City. The Lexington was added to
Marriott's "
Autograph Collection" brand in mid-2013. In mid-2016, the LPC proposed protecting twelve buildings in East Midtown, including the Lexington Hotel, in advance of proposed changes to the area's zoning. On November 22, 2016, the LPC designated the Lexington Hotel and ten other nearby buildings as city landmarks. The hotel closed temporarily in early 2020 due to the
COVID-19 pandemic in New York City. The sale occurred amid a
decline in tourism due to the COVID-19 pandemic. Farkas reopened the hotel shortly afterward; prior to his purchase, the hotel had been closed since early 2020 due to the pandemic. In May 2024, the hotel was refinanced with a $155 million loan from
Hudson Bay Capital. By 2025, Farkas and his partners were looking to sell the hotel for about $275 million. ==Notable tenants==