A Manhattan neighborhood known for its boutique hotels will soon be home to a classic luxury brand.

Flag Luxury Group LLC signed a deal with Marriott International Inc. to develop a Ritz-Carlton hotel at 28th Street and Broadway, near the Ace Hotel New York and the NoMad Hotel. The project is expected to cost more than $500 million, according to a statement from Marriott, and will feature 250 hotel rooms and 16 branded residences in a 500-foot (150-meter) tower designed by architect Rafael Vinoly.

The property was connected to the Ritz-Carlton brand in news reports last year, though the deal wasn’t finalized until this month. Flag, run by Dayssi and Paul Kanavos, owns four Ritz-Carlton hotels in Florida, according to the company’s website. The New York hotel is slated to open in 2021.

New York commands the highest average daily room rate in the U.S. ©2018 Bloomberg L.P.

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Skift Editor’s Note: The opening of the Ace Hotel New York in 2009 ushered in a new era of transformation for New York City’s Garment District/NoMad neighborhood, which is now home to dozens of hotels, ranging from boutique and midscale brands and now, to luxury. You can read more about how it transformed the neighborhood in Skift’s Complete Oral History of Boutique Hotels.

Photo Credit: A Manhattan neighborhood known for its boutique hotels will soon be home to a classic luxury brand. Ron Antonelli / Bloomberg