Newly formed Schrager Hotels will launch two new brands following the sale of Gramercy Park Hotel in New York, US.

The first brand will be a luxury lifestyle concept, while the second will offer less-expensive major city centre hotels and smaller properties.

The first hotel to be opened will be operated under the new brands will be the Ambassador East in Chicago, which is undergoing a $25m renovation.

It is expected to open under its new management in September 2011.

Schrager intends to open the new brands in major international cities, including London, Paris and Istanbul.

It is also working on the new Edition brand for Marriott, according to