Jay-Z is planning to launch a high-end hotel chain in Manhatttan, dubbed the J Hotel.

The former Def Jam president along with partners CB developers and the SK Development group have acquired a 150,000 square foot site and air rights for $66.4 million this month, according to GlobeST.com.

The flagship hotel will be located in New York City's Chelsea neighborhood at 511 West 21st Street and will have the potential to rise to 12 stories.

Time Warner Cable company is currently leasing the five-story warehouse and parking garage at 511 West 21st Street.

Jay-Z and partners intend to expand the hotel chain to other major cities once the initial location is completed.

A spokesperson for Jay-Z had no comment at press time.

On Dec. 24, Jay-Z stepped down as president of Def Jam, having denied rumors of a departure earlier in the year.