The 210-bedroom Holiday Inn is surrounded by New York City's biggest tourist attractions including Broadway, the Rockefeller Center and the Empire State Building.
The reopening is part of IHG's $1b relaunch of Holiday Inn which involves updating more than 3,200 hotels around the world.
In addition to the 3,200 hotels already open, there are a further 1,050 in the development pipeline which are due to open with the relaunched branding in the next three to four years.
Andy Cosslett, IHG's chief executive said, "The opening of our 1000th relaunched Holiday Inn hotel is the latest milestone on our three-year journey and demonstrates the momentum behind the programme.
"Despite the tough economic climate, we've relaunched, on average, four hotels a day for the past six months and we're committed to completing the global relaunch by the end of 2010."
Cosslett also said that the relaunched hotels had already benefited from an increase in revenue per available room (revpar) of more than 5%.
Relaunched hotels feature new bedding, upgraded showers and bathroom amenities, new exterior lighting and landscaping and new signage with the redesigned logo.
By Gemma Sharkey
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