Updated, Sept. 23, 4:45 p.m.: The operator of the Martinique lodge in Manhattan has filed for Chapter 11 personal bankruptcy security.
Herald Resort Associates, which runs the boutique hotel at 49 West 32 Street in Koreatown, this week submitted a petition with the U.S. Individual bankruptcy Courtroom for the Southern District of New York. The Martinique is aspect of Hilton Hotels’ Curio Selection portfolio.
The business owes concerning $10 million and $50 million, and has approximated property of between $100 million and $500 million, according to the filing.
The hotel’s 123 staff members were being laid off as of March 18 for a “temporary plant closing,” in accordance to the discover filed with the state.
With the submitting, the corporation is making an attempt to negotiate with its creditors to get back on its feet, explained Scott Markowitz, an lawyer for Herald Lodge Associates. JPMorgan Chase, from which the organization attained a $14 million home loan, is amid the greatest lenders, he reported.
“We consider Chapter 11 will allow the resort to continue on to prosper as it has for lots of yrs,” he explained.
The hospitality marketplace has been between the toughest hit by the pandemic, with virtually 50 percent of individuals employed by accommodations, bars and places to eat getting rid of their jobs this calendar year.
Even larger resorts are not immune to the downturn: Hilton introduced that it would forever near its 478-home hotel in Periods Square as of Oct. 1.
The Courtyard by Marriott in Herald Sq. also shuttered its doors as of Aug. 24.
UPDATE: This story was updated to add a assertion from an legal professional for Herald Lodge Associates.