rename the hotel, renovate the rooms, and add a health club, although they continued to operate the Halloran House as a Howard Johnson franchise. Halloran used the proceeds from the hotel's sale to pay back one of his lenders, the Marine Midland Bank, in what the Manhattan District Attorney's office later described as a check kiting scheme. 525 Lexington Ave. Associates renovated the hotel again between 1988 and 1989, adding air-conditioners in each room, as well as replacing many windows. The renovation overran its budget by 12 percent. Marriott operation 1990s After the late-1980s renovation, Bailey had wanted to sell the hotel for about $300,000 per room, although few potential buyers were willing to pay that price. By then, little remained of the hotel's original interior. Marriott Hotels & Resorts, which wanted to operate a hotel on the East Side of Manhattan, agreed to pay Bailey $13 million, allowing Bailey and his partners to cover the cost overruns of the project. The Halloran House became the New York Marriott East Side, the second Marriott-branded hotel in Manhattan, after the New York Marriott Marquis near Times Square. Marriott operated the hotel under lease for several years. 525 Lexington Avenue Associates filed for Chapter 11 bankruptcy protection in 1994, and Marriott's parent company Host Marriott, in conjunction with Morris Bailey, bought the hotel the same year. Host Marriott and Bailey paid $55 million for the hotel, which amounted to $82,800 per room. By 1996, Marriott was planning to spend $45 million refurbishing the Marriott East Side. Host Marriott sold the hotel to Strategic Hotel Capital Inc. in April 1998 for $191.3 million; the Marriott East Side was Strategic Hotel Capital's first hotel in New York City. The new owner subsequently renovated the Marriott East Side extensively. Perkins Eastman designed a steel canopy for the hotel's entrance, which was completed in 2000. 2000s and 2010s The Prime Property Fund, managed by Morgan Stanley, acquired the hotel building in 2005 for $287 million. At the time, the hotel had 646 rooms. The building underwent significant interior renovations in 2007 and exterior refurbishments in 2009. The Marriott chain's first teleconference suite opened at the Marriott East Side in late 2009. The Prime Property Fund was looking to sell the hotel for $350 million by March 2012, having spent $26 million renovating the hostelry. After mayor Michael Bloomberg proposed rezoning East Midtown in 2012, preservationists began