It was supposed to be renovated and converted to a hotel, but there was some sort of squabble between the co-owners and it was left half gutted. It was auctioned off then as a dispute resolution.
Getting to stay in an iconic building? And getting to brag about snagging a skinny triangle room? And the location on Madison Square Park is ideal.
Definitely hope it winds up that way. I could totally imagine Ace Hotel buying and running it if they didn't already have a location just a few blocks north. There's got to be another boutique urban hotel brand though?
As for "boutique" urban hotel brands, I think it's a fad lately, even within the major hospitality groups - the Hilton Curio and Marriott Autograph sub-brands specialize in these kinds of things, and Westin / W used to operate a lot of these kinds of properties too.