Left for dead during the pandemic, the Hotel Martinique suddenly takes on new life thanks to an unexpected buyer.
Burnett Equity, an Oklahoma City-based developer, bought the lease on the closed hotel for $ 55 million last week, according to the New York Post. The deal will allow the hotel to reopen in the coming months.
According to the Post, ownership of the Greeley Square store could start reopening as early as next month. The hotel will carry the Curio Collection by Hilton brand, the same brand it owned when it was forced to close amid the pandemic.
Exterior work on the hotel at 49 West 32nd Street could take between 12 and 18 months, the Post reports. and Burnett is expected to spend an additional $ 60 million on renovations.
Nevertheless, the percolating reopening of Martinique is miraculous in itself. Operator Herald Hotel Associates filed for bankruptcy in September 2020, and owes between $ 10 million and $ 50 million. The hotel laid off its 123 employees on March 18.
The mortgage on the property fell into foreclosure in late 2020 when the tenant of the property died, the Post reports. Marcus & Millichap were commissioned to market the bankruptcy lease by the landowner, a private investor from Florida.
The lease was to be sold for between $ 70 million and $ 75 million. But the costly restoration of the facade and the difficulty of financing the contract resulted in an adjustment.
Despite ongoing struggles in the hospitality industry, a slew of New York City hotels have reopened in recent weeks following a law requiring them to reopen by November 1 or pay compensation departure to unemployed hotel employees. The Omni Berkshire Place, the Grand Hyatt near Grand Central, and the Hilton Midtown on Sixth Avenue are among those that recently announced plans to reopen.
[NYP] – Holden Walter Warner