Royalton Park Avenue Hotel Lags $ 124 Million Loan

0
38

[ad_1]

When tourism in the city came to a standstill last year and hotels were in a danger zone, Royalton’s occupancy rate dropped to 54%, according to Trepp, and its owners failed to repay loans on several occasions. The service technician made them easier by allowing the cash reserves to be used to make payments, but the situation did not improve.

This is not how the hotel’s problems began. It has struggled with negative cash flows since at least 2015, and it had problems even during good times in 2019, when its occupancy rate was around 90%.

This is a sign that the hotel’s financial problems run deeper than the shortage of guests. Representatives for Highgate and GreenOak did not respond to a request for comment.

Meanwhile, other high-cap hotels in the city have begun to emerge from the hibernation associated with the Covid-19 pandemic, including The Peninsula, Mandarin Oriental, Dream Downtown and Dream Midtown, which are operated by Dream Hotel Group.

The Dream Downtown property was owned by the Indian firm Sahara India Pariwar, which was delaying loan payments to its lender, Katara Hospitality. Katara reportedly took over a $ 125 million lease of land for the building this month, although this is unlikely to affect Dream’s operations at the facility.

Katara Hospitality also acquired the Plaza Hotel off the Sahara in 2018 for $ 600 million.

Other hotels have changed hands in the past 15 months, including the LaGuardia Marriott, the Watson Hotel, and property in Long Island City, formerly the Z Hotel NYC. In September, Royalton Midtown was sold for $ 41 million, the second time a property has sold at a loss in a decade.

Others remain optimistic about the city’s tourism industry. Hotel operator Marriott and developer Lightstone have expanded their hotel portfolio in the city with Moxy Lower East Side and Moxy Williamsburg.

The highly anticipated Margaritaville Resort Times Square will open on July 1st.

Meanwhile, the city is looking to buy many of the hundreds of hotels that remain closed or are in disaster in order to turn them into affordable housing.

A bill sponsored by State Senator Michael Janaris of Queens, which was recently sent to Governor Andrew Cuomo’s table, lays out a plan for the transformation.

He demands that at least half of the converted property be dedicated to the homeless; the rest will go to tenants who receive between 50% and 80% of the median income in their area. The property will be managed by non-profit organizations and will be protected by rent stabilization laws. Rentals will be capped at 30% of the local average income.

[ad_2]

Source link