Only about 10 percent of the city’s hotels are in the luxury category, according to Nikhil Bhalla, a lodging analyst at FBR & Co. in Arlington, Virginia. The properties are less profitable for investors because they offer costly extras such as valet parking, 24-hour room service, multiple restaurants and full-service spas.

The Park Hyatt will be on the lower levels of Extell Development Co.’s One57 condo tower, Manhattan’s second-tallest residential building at 1,004 feet (306 meters). Hyatt and Extell spent an average of $1.8 million a room constructing the hotel, according to Bhalla.

The rooms, ranging from 475 to 2,239 square feet (44 to 208 square meters), were designed to resemble high-end apartments, with floor-to-ceiling windows and wood flooring. Bathrooms are stocked with products by boutique perfumery Le Labo and the mirrors have television screens. Two restaurants, The Back Room at One57 and The Living Room, will be run by chef Sam Hazen, formerly of New York’s Veritas. Walls of a ballroom are covered with 26 tons of back-lit white onyx.

‘Missing Component’

The hotel will be the 34th worldwide and sixth in North America under the Park Hyatt brand, which is the top tier for the company. A five-star property is “a missing component of Park Hyatt’s network,” said Daniel Lesser, chief executive officer of New York-based LW Hospitality Advisors.

“Their guests travel to world capitals and when they come to New York, they want a five-star hotel,” he said. “Hyatt doesn’t want them staying at the Four Seasons and liking it.”

A subset of luxury hotels, mostly located in the heart of large cities, qualify for a five-star rating, the highest by the Forbes Travel Guide. Properties with the distinction include the Peninsula Beverly Hills in California, the Four Seasons Hotel Chicago and the Ritz-Carlton New York.

Five Stars

To earn five stars, hotels must provide room amenities including fresh flowers and wine by the glass presented in the bottle and poured by room-service staff, according to Forbes. If there is a pool, guests are greeted and escorted to their chairs and set-up assistance is provided or offered.

Every rated property is visited by an inspector, and those that might qualify for a four- or five-star ranking get a second anonymous inspection, according to Forbes.