Ian Schrager Hotels took over management in 1997, and the hotel became simply Clift. Schrager bought the hotel outright in 1999, for $80 million. Soon after, he oversaw a $50 million complete renovation, which involved the restoration of the Redwood Room, and the gutting and redesign of much of the rest of the hotel, by designer Philippe Starck.
The hotel underwent a significant transformation under Ian Schrager's ownership.  In 1997, it was renamed Clift after being taken over by Schrager Hotels. In 1999, he purchased the hotel outright for $80 million and oversaw a complete renovation costing $50 million. This included restoring the Redwood Room and redesigning most of the rest of the hotel with Philippe Starck's design vision.