The Bowery Boogie's anonymous tipster states:
The 225 Bowery project will be what Ace is calling a “distilled service” venture (an over-priced capsule hotel with a faux-hostel vibe). Ace has been trying to develop its capsule offshoot in Portland for several years at the old Grove Hotel, but investors began pulling out when they couldn’t convince the city to evict a homeless camp on the nearby street.
Of course this is not be the first time the Ace will have transformed an SRO into one of its hotels: they did much the same thing with their first New York property, and the Seattle building had previously belonged to the Salvation Army. Given that the building has been slated for renovations for a while now, we do wonder if we'll see again what happened with the Ace London; the hotel opening it's doors mere months after being announced? Well, the report says that the community center will cease operations "within the year."
We can barely keep up with the level of hotel development going down on the LES; other projects currently in development include another Hotel Indigo, 180 Ludlow, a second CitizenM, and The Jarmulowsky, a landmarked 1912 bank building that has had a boutique hotel in the pipeline for a while now -- the Bowery Boogie reports that this is also going to become an Ace property (albeit under a different name -- much like their Panama property), but we were told differently earlier this year, so still feeling skeptical.