Royalton Park Avenue hotel owners set to default on $ 124 million loan – Business Watcher

Another Manhattan hotel is in distress: this time the Avenue du Parc Royalton, whose owners are about to default on a $ 124 million loan.

Spokesmen for Highgate and GreenOak did not immediately return requests for comment.

As the coronavirus pandemic raged through the hospitality industry nationwide, Royalton’s occupancy rate fell to 54% and its owners missed several loan payments, Crain’s New York reported.

GreenOak and Highgate bought the hotel, which was previously called Gansevoort Park Avenue, in 2017 for $ 200 million and renamed Royalton Park Avenue, as the trade observer previously reported.

While the the tourism industry has started to slowly rebound in town, you don’t expect hotels to hit normal occupancy rates until 2025, and hundreds of hotels in the city have closed or changed hands.

Last week, Katara Hospitality got the land lease for the Dream city center hotel in Chelsea after the owner defaulted on his $ 80 million loan. (The transfer of the land lease will not affect the hotel operator Group of dream hotelsagreement to manage the location.)

In Brooklyn, Patrimonial action partners filed for bankruptcy for its flagship development, The Williamsburg Hotel, and faces foreclosure on Bushwick land he planned to build a hotel with 144 rooms.

With an increasing number of vacant hotels in the city, the New York Legislature passed a bill last week to allow the state to buy them and convert them into permanent affordable housing.

But not everyone shuns the hospitality industry. Jeff Sutton‘s Properties of Wharton wants to transform his two-story commercial building To 25, 34th Street West in a 363-room hotel and filed for a permit with the city in April.