Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
Most airport hotels are huge, architecturally bland and impersonal affairs, where one simply checks in because it’s the only real practical choice. It is either that or trying to manipulate your weary body into a comfortable position on a very uncomfortable plastic seat or bench, or if one is a little luckier a more comfortable perch with an aperitif and snacks at one of the growing number of luxury lounges. However, even the latter option might not stack up as that appealing if one has been on the go for a while.
There is a however a growing number of airport hotels that stack up as a solid hotel experience for weary travellers who do not have enough time to enjoy that cities attractions. Skytrax ranks hotels such as the Crowne Plaza (Singapore), SkyCity Marriott (Hong Kong), the Sofitel (London), the Grand Hyatt (Dallas) and the Hilton Frankfurt as some of the best.
JetBlue (NASDAQ: JBLU, initial buy at $8.77) wants to add another one to that list as part of a consortium with developer MCR. And after a unanimous vote by the Port Authority of New York and the New Jersey board of commissioners on September 24, the consortiums’ plans to transform the iconic (but vacant) TWA terminal at the John F. Kennedy Airport into a hotel complex has been given the green light.
The Trans World Airlines terminal at Kennedy Airport was designed by Eero Saarinen and opened in 1962. With its distinctive winged shape, the TWA Flight Center soon became an icon of the golden age of flying and was hailed as the “Grand Central to the jet age.” The building has appeared in a number of films where flying has played a major role, such as Steven Spielberg’s Catch Me If You Can starring Leo DiCaprio.
The building became vacant and closed down in 2001 after TWA ceased operations and remained vacant since. The path to this point has been a twisty one, with the Port Authority spending $20 million on renovation in the interim period to comply with the building’s historic designation. Hotelier André Balazs was slated to develop the hotel but eventually dropped out.
Several other groups were then in the running to develop the building into a hotel and the partnership between JetBlue and hotel developer MCR Development has won approval. The project calls for a 75-year lease agreement and the complex will feature two six-story hotel towers and a micro-grid energy management system, allowing the building to generate its own power. There will be 505 hotel rooms, 40,000 square feet of meeting space, restaurants, a spa and a 10,000-square-foot observation deck.
JetBlue is not straying too far from their knitting and will be a minority investor, but as the hotel will sit right in front of their flagship terminal it should be great for JetBlue brand. Certainly, it is a well overdue upgrade for an airport that is a gateway to one of the world’s great cities!
JetBlue has done a great job of differentiating its brand from other low cost carriers with its premium Mint service, in-flight WiFi and strong customer service satisfaction ratings. Combined with low fuel prices and route expansion, the stock continues to fly high.
For nearly 15 years, Fat Prophets remains UK’s premier equity research and funds management company. Register today to receive our special report Bargain Hunting, and a no obligation free trial to our popular email service
