Hotel Chelsea

A Storied Legacy

The Hotel Chelsea looms large in American history, not just for its architectural grandeur, but for the vibrant artistic community it fostered. Built in the late 19th century, it started as a cooperative housing artists and other infamous names in New York and American culture. This expansive space, with its 12 stories and Victorian charm, transformed into a haven for legendary figures. From literary giants like Mark Twain and Tennessee Williams to musical icons like Janis Joplin and Sid Vicious, the Chelsea pulsed with creative energy. Within its walls, novels were penned, songs were composed, and artistic movements were born. The Chelsea transcended its role as a hotel, becoming a testament to the enduring power of artistic expression in American culture.

After decades of disrepair and closing its doors in 2011, the Hotel Chelsea is once again revitalized and now bustling with Food & Beverage outlets thanks to Sunday Hospitality Group and partner Charles Seich. The hotel is now experiencing a renaissance as it reclaims its place in New York culture. In 2022, the Chelsea reopened its doors for new guests, with its food and beverage outlets being managed by Sunday Hospitality and partner Charles Seich. The team views this operation as a reflection of the expansiveness of the Hotel Chelsea and its legacy in the fiber of New York City.

Many New Yorkers thought the legacy of Hotel Chelsea had come to an end, but their story is far from over. With the revitalization of the food and beverage sectors of the hotel, Sunday Hospitality and Charles are bringing the property into its newest era, garnering massive attention from critics and the public alike. As they usher in a period of unbridled success, the Chelsea stands tall with its reputation at the forefront of a movement that is once again putting the iconic hotel back on the map as one of the hottest spots in the city. This new chapter ensures its place as a vibrant cultural hub for New York City and a testament to the enduring power of artistic expression.

Cost and Cash Control- The key ingredients to success.

In addition to restoring the Victorian-Gothic exterior, the extensive guest suite renovations, and safety upgrades for the nearly 140 year old building, the group planned to reopen the fabled El Quijote restaurant, renovate and reimage multiple function spaces, and launch 3 new onsite bars and restaurants.

To mitigate the risk of suffering the same fate, SHG and Seich took the challenge of rehabilitating the hotel’s food and beverage departments both financially and operationally. The team knew they had to establish a line of sight to true costs and accurate cash projections from the start, but could not waste time building and onboarding a conventional in-house financial staff. The Chelsea operation would require an expert team that could ramp up to immediately support the renovations, a team that could scale quickly to support a fully functioning operation within a few months. Charles knew the answer straight away.

“There is a clear economic benefit to working with Paperchase versus the overhead of building an in-house accounting department for our food & beverage operations.”

– Charles Seich, Partner

Confidence in their scalability and level of expertise weighed heavily in the decision to work with Paperchase. Hospitality operations move fast, and “it’s important to view the operation as 24/7 and ensure the team’s oversight and systems in place can embrace that mindset”, said Charles. The Paperchase team matched the pace of the operation seamlessly. They exceeded expectations and immediately established processes to handle the expenses from the renovation, and then the many revenue streams on the property following the grand opening.

Expert accountants who treat client success as their own.

The Paperchase team of experts combed through hundreds of invoices, set up multiple revenue and cost centers, and implemented reporting and controls to effectively track and communicate budget performance. They capitalized on their ability to dissect labor costs, diving deeper into daily and weekly labor allocations and making recommendations to mitigate the cost of the large staff.

A typical food and beverage operation averages 10-20 invoices per week, but the Chelsea received three times that volume, each with line-level detail to be allocated to the various revenue centers throughout the hotel. This required a true understanding of the complexities of a 24/7 hotel operation with multiple food and beverage centers and continuous renovations. The team took this in stride and delivered day after day.

The Paperchase accountants followed up with vendors to make certain every expense was captured and offered confident recommendations for cost control to protect the bottom line. The team was committed to doing it right and doing it fast- support that proved to be invaluable to Seich and the leadership team.

The Hotel Chelsea continues to serve up strong results.

Well into the second full year of operation, the collaboration between the Hotel Chelsea and Paperchase continues to be a relationship where both parties understand how to get results. The hotel as a total exceeded its YTD sales budget by 16.1% and is already recording profits in 2024. Cost control measures implemented with the help of the Paperchase team have already contributed to savings of over $59,000. Given the property’s multi-million dollar operating budget, this is no small feat and is sure to help guide Hotel Chelsea into its next century of
storied guests and notable profits.

“Our relationship with management is incredible,” says Haroon Baig, lead handler for the Chelsea account. “We see this as a symbiotic relationship. We will grow with them for Hotel Chelsea and all their entities.”

Brief summary of Paperchase

For over 30 years Paperchase has been the ‘go-to’ accountants for restaurants, bars, pubs and other hospitality brands who desire financial management from experts who truly understand the hospitality industry.

With a global team of over 1000 professionals, we support hundreds of hospitality clients around the world, including Europe, America, the Middle East, Africa & Asia. Our diverse client base collectively have over 15 Michelin Stars and range from start-ups to multi-chains and high-profile establishments. Hospitality is at our heart and we remain dedicated to providing high-quality services, enabling our team to make more informed and profitable decisions. Explore our offerings and match with an expert here.