Why An Exclusive Gramercy Park Co-op Is Suing Hotel Over Its Rooftop

In one of the most affluent blocks in Manhattan, an unusual dispute is taking place between the Gramercy Park Hotel and its neighboring co-op building, 50 Gramercy Park North.

The exclusive 17-story, 21-unit co-op building filed a lawsuit in the New York Supreme Court on June 4 against the hotel over its rooftop, which had suddenly turned into a construction zone.

But the lawsuit was not just about the renovations. When the hotel operator MCR Hotels bought the ground lease to the 17-story building from Solil Management in 2023, it was clear construction would ensue.

Rather, the lawsuit claims the construction is impeding the co-op’s right to access the hotel’s rooftop. Now, the dispute has set up a battle that has roots dating to nearly a century ago.

The historic Gramercy Park Hotel was originally opened in 1925. For its first decades, the hotel took on a high-class reputation. Humphrey Bogart married his first wife there, Babe Ruth was a regular at the Rose Bar, and James Cagney and his wife, who lived nearby, dined there often. Young John F. Kennedy stayed there with the other members of the Kennedy clan.

Then, in the 70s, it became a bit more bohemian, and musicians including Bob Dylan, David Bowie, Madonna, Lou Reed, Blondie, and Sid Vicious passed through. The gonzo journalist Hunter S. Thompson and actor John Belushi also frequented the establishment.

Despite its iconic and storied past, the 200-plus-room hotel reportedly began to face financial troubles. It was dealt a final blow by the COVID-19 pandemic, which forced it to close in 2020.

After buying the ground lease, MCR said it planned to restore the hotel to its former grandeur.

The co-op requested to be in the know about the neighboring hotel’s renovations and was sent drafts of construction plans. Yet, on May 18, a structure appeared on top of the roof of the hotel, which the co-op claims was not in the draft.

This specific construction was a concern to the co-op, as the two buildings had an agreement that allowed the residents of the co-op access to the hotel’s rooftop.

For around 75 years, 50 Gramercy Park North was part of the Gramercy Park hotel, which at the time had over 500 rooms. However, when the building was bought by hotelier and Studio 54 co-founder Ian Schrager in 2004, he commissioned architect John Pawson to renovate the park-lining section into the luxurious co-op it is today.

The co-op retained many of the hotel’s amenities, including room service, a membership to the hotel’s gym, and access to the rooftop, which was sealed in a 2006 agreement between the two buildings.

The lawsuit claims the hotel is now in violation of this agreement, and said the co-op’s rooftop access is an “irrevocable and perpetual” right.

Court documents show that the two buildings were in communication over the hotel’s renovation plans and suggest that the hotel offered the co-op’s residents membership to its “private rooftop club.” In one email from March 2025, a representative of the co-op responded to this as a “fabulous idea.”

Throughout the following months, correspondence shows that the co-op asked the hotel for proposed work plans on multiple occasions, which the co-op claims the 2006 agreement granted it the right of access to.

However, subsequent emails suggest the plans were not sent and that the co-op was beginning to become concerned over plans for the hotel’s rooftop. In January, a draft was sent, which the co-op claims did not include the rooftop construction.

The lawsuit claims that the hotel is building a dining space that will serve as a “members-only social club for guests of Hotel Operator’s choosing.” In June, a judge ordered that the construction be halted.

The hotel said that this dining space will be open to the public. Claiming that the stop-work order was causing financial harm, the hotel slapped the co-op with a countersuit seeking $125 million in damages.

Vincent Pallaci, a lawyer for the Gramercy Park Hotel, said that the co-op was offered an alternative private space on the third floor. During a hearing, he said this space “is actually going to be nicer.”

The hotel says that this alternative space should meet requirements outlined in the 2006 agreement.

For now, it seems Judge Anar Patel agrees with the hotel. On July 13, he ruled that the hotel could resume its construction of the dining space.

It is unclear when construction will resume or whether the hotel will still be seeking the $125 million in damages. Representatives of the hotel did not respond to requests for comment on the decision. A representative for the co-op declined to comment.

If the lawsuit continues, the battle could drag out for some time. The Trial Readiness Conference, which occurs several weeks before a trial begins, is not scheduled until April 20, 2027.