Roundabout Warns Studio 54 Could Close Without Zoning Relief for Renovations

According to a new filing with the New York City Department of City Planning, the discotheque turned Broadway theatre, Studio 54, could face closure within the next two years without zoning relief that would allow Roundabout Theatre Company to fund a long-planned renovation of the historic venue,

In the filing, Roundabout outlines structural and operational problems tied to renovations made in the late 1970s, when the former opera house was converted into the legendary Studio 54 nightclub.

Changes made at that time, including leveling the auditorium floor, have resulted in persistent sightline issues that the company says require regular ticket discounts and refunds. The filing also cites the lack of an orchestra pit, a poorly positioned bar, and a lighting control area that can only be accessed by ladder.

Roundabout says a comprehensive renovation is needed to address those limitations and allow the theater to remain competitive as a performance venue. Plans described in the filing include removing the former dance floor and installing a newly angled seating layout to improve audience views, as well as adding an orchestra pit. 

The company states that it cannot move forward with the project under current zoning conditions. While historic theaters often fund major renovations through the sale of unused air rights, Studio 54 no longer has development rights available. Those rights were transferred by a previous owner to support construction of the adjacent Marc residential tower before Roundabout purchased the property in 2003. Because the theater remains part of the same zoning lot, the city considers its air rights fully used.

Roundabout argues that the transfer occurred shortly before zoning policies were updated to encourage air-rights sales as a means of supporting theaters. The filing asks the city to grant new air rights for Studio 54 or to allow theater air rights to be sold more broadly across the Theater District, rather than limiting transfers to neighboring sites.

The filing also notes that Studio 54 cannot benefit from a theater-specific zoning bonus typically available when venues expand, as the building has no physical capacity to grow on its lot. That limitation, Roundabout contends, should make the theater eligible for additional zoning flexibility.

Located at 254 West 54th Street, the building was constructed in 1927 as the Gallo Opera House and later served as a CBS television studio before becoming Studio 54 in 1977 under owners Steve Rubell and Ian Schrager. The nightclub closed in 1980. Roundabout leased the building in 1998, presenting a long-running revival of Cabaret, and purchased the property in 2003.

Without approval of the proposed zoning changes, Roundabout states that it would be unable to finance the necessary renovations and would be forced to shut down the theater. The nonprofit company, which operates five stages, reported $114 million in assets on its most recent publicly available tax filing.