Up-to-date, Sept. 23, 4:45 p.m.: The operator of the Martinique resort in Manhattan has submitted for Chapter 11 personal bankruptcy defense.
Herald Hotel Associates, which runs the boutique hotel at 49 West 32 Street in Koreatown, this 7 days submitted a petition with the U.S. Individual bankruptcy Court for the Southern District of New York. The Martinique is aspect of Hilton Hotels’ Curio Collection portfolio.
The organization owes amongst $10 million and $50 million, and has approximated assets of concerning $100 million and $500 million, according to the filing.
The hotel’s 123 personnel have been laid off as of March 18 for a “temporary plant closing,” in accordance to the notice filed with the state.
With the filing, the organization is striving to negotiate with its lenders to get back again on its feet, stated Scott Markowitz, an lawyer for Herald Resort Associates. JPMorgan Chase, from which the business obtained a $14 million mortgage loan, is amid the most important collectors, he explained.
“We believe that Chapter 11 will empower the hotel to proceed to thrive as it has for numerous several years,” he stated.
The hospitality business has been among the toughest strike by the pandemic, with just about 50 % of all those used by motels, bars and dining places dropping their positions this 12 months.
Even even larger inns aren’t immune to the downturn: Hilton declared that it would permanently shut its 478-place lodge in Instances Sq. as of Oct. 1.
The Courtyard by Marriott in Herald Sq. also shuttered its doorways as of Aug. 24.
UPDATE: This story was current to insert a statement from an lawyer for Herald Lodge Associates.