Party boy hotelier Vikram Chatwal’s Time Hotel hits foreclosure auction block

New York /
Sep.September 26, 2013 04:44 PM

The ground lease for the Time Hotel, the 192-room boutique Theater District property formerly owned by playboy hotelier Vikram Chatwal, is set to hit the foreclosure auction block, now that discussions between the young billionaire’s Hampshire Hotels and special servicer LNR Partners have collapsed.

Hampshire owes nearly $55 million to lenders for the property, at 224 West 49th Street, according to data from PropertyShark. A foreclosure judgment was issued against Hampshire in July.

Hampshire will bid on the property at the auction to try to retain ownership, said Jay Stein, CEO of the hospitality company. The hotel is known as a celebrity hotspot and has hosted models like Naomi Campbell and Kate Moss.

“We tried to negotiate with [LNR] but they have to do a public auction to ensure they’re getting the most they can get [for the asset,]” Stein said of the special servicer.

The auction will take place October 23 at 60 Centre Street, according to PropertyShark. An attorney for LNR was not immediately available for comment.

Hampshire took out a $43.1 million mortgage against the property from Lehman Brothers in 2005 and then another $11.9 million gap loan shortly after. The loans were later combined into one major loan and were transferred to LaSalle National Bank. The borrowers first defaulted on the debt in November 2009 and then reached a forbearance agreement that lasted until November 2011.

Hampshire struggled to meet the loan payments thanks to increasing competition in the market from new hotels like the W NY Times Square, it was previously reported.

The company had better luck with its Dream Hotel at 210 West 55th Street. In March, Ladder Capital, the commercial real estate finance company, provided $100 million to refinance the formerly distressed property.

Meanwhile, Chatwal’s personal life has featured heavily in the press in recent months. The 41-year-old recently became engaged to Spanish supermodel Esther Canadas and was busted on a drugs charge in Florida in April.


Related Articles

arrow_forward_ios
From left: Furnished Quarters' Steven (left) and Gary Brown with 315 West 33rd Street (left) and 158 West 27th Street (Furnished Quarters, CityRealty, CityFeet)
Landlords sue hospitality stalwart Furnished Quarters
Landlords sue hospitality stalwart Furnished Quarters
Tribeca Associates managing partner Mark Gordon. (Moxy, LinkedIn via Gordon)
Mark Gordon’s Tribeca Associates walks away from FiDi Moxy Hotel
Mark Gordon’s Tribeca Associates walks away from FiDi Moxy Hotel
(iStock)
Job recovery sputters, but hospitality & leisure add hiring
Job recovery sputters, but hospitality & leisure add hiring
Ron Burkle and Andrew Zobler with The NoMad New York. (Google Maps, Getty)
NoMad Hotel heads back to the auction block
NoMad Hotel heads back to the auction block
Jeff Sutton and 25 West 34th St. (Wharton Properties, Google Maps)
Jeff Sutton will replace Midtown retail space with hotel
Jeff Sutton will replace Midtown retail space with hotel
The Plaza Hotel, St. Regis Hotel, and Waldorf Astoria (iStock)
Outlook for hotels improves — from awful to merely bad
Outlook for hotels improves — from awful to merely bad
Sonder co-founder Francis Davidson (Sonder, iStock)
Sonder will merge with SPAC to go public
Sonder will merge with SPAC to go public
It may not be so easy to book a vacation this year: Rental listings are flying off the market, and prices are soaring. (iStock)
Bonkers season on tap for summer vacation rentals
Bonkers season on tap for summer vacation rentals
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...