Will the Hotel Pennsylvania be renovated or replaced by a supertall office tower? We still don’t know, and neither does the head of developer Vornado, according to Real Estate Weekly. In the past decade, the company had announced, and the city had approved, plans to replace the hotel with a 1,216-foot office building dubbed 15 Penn Plaza. Those plans, however, were abandoned in 2013 following loss of anchor tenant Merrill Lynch. That was good news for the nearby Empire State Building, which protested the planned tower.
Since then, however, the hotel has been awaiting a massive restoration, estimated to cost $300 million, and there is no word on whether that will happen or an office building will return to the table. "We have not yet resolved what the right business plan is for that," said Vornado’s Steven Roth. Right now, his focus seems to be on existing office properties One Penn Plaza and Two Penn Plaza, which are being connected to form a single complex.