The Port Authority of New York and New Jersey approved a 75-year lease with a developer to transform the former TWA Flight Center at John F. Kennedy International Airport into a hotel.
The $265 million construction project the Port Authority Board of Commissioners approved Sept. 24 calls for a 75-year lease agreement with Flight Center Hotel LLC in a partnership of MCR Development and JetBlue Airways Corporation to remake the TWA Flight Center and its nearly six-acre site into JFK's only on-airport hotel. Under terms of the deal, MCR Development will maintain 95% ownership of the hotel and JetBlue will have 5%.
The project is expected to break ground in early 2016 and open in 2018, according to Port Authority officials. Flight Center Hotel LLC will invest roughly $265 million to continue renovations of the historic TWA Flight Center, while developing 505 hotel rooms, 40,000 square feet of meeting space, restaurants, a spa and a 10,000-square-foot observation deck. The Port Authority will also fund a $20 million renovation to help preserve the terminal's 1960s look.
"The Port Authority is proud to ensure the TWA Flight Center plays a critical role in JFK Airport's future, while acknowledging its importance in aviation history," said Port Authority Executive Director Pat Foye in a statement. "The new hotel will serve the growing needs of our passengers throughout the 21st century, with a touch of the bygone era of glamorous mid-20th Century jet-age travel."
"This administration has committed to modernizing New York's airports for the 21st century by creating gateways worthy of New York City and ensuring travelers have the services they need,'' said New York Gov. Andrew Cuomo. "At the TWA Flight Center, we are able to meet those goals while also preserving its iconic design for passengers to enjoy for decades to come."
The Port Authority is rated Aa3 by Moody's Investors Service with a stable outlook.
