Airbnb and RXR nix resi conversion deal at 75 Rock

10 floors of the 33-story tower would have housed 200 hotel-style units

New York /
Apr.April 27, 2020 04:45 PM
Airbnb’s Brian Chesky, RXR Realty’s Scott Rechler and 75 Rockefeller Plaza (Credit: Rechler by Eugene Gologursky/Getty Images, 75 Rockefeller)

Airbnb’s Brian Chesky, RXR Realty’s Scott Rechler and 75 Rockefeller Plaza (Credit: Rechler by Eugene Gologursky/Getty Images, 75 Rockefeller)

A deal between Airbnb and RXR Realty that was touted as a “21st-century hospitality model” will never see the light of day.

The short-term rental giant and the landlord are pulling the plug on a 10-floor residential rental conversion at 75 Rockefeller Plaza, according to Business Insider. The companies said last year that they would bring 200 hotel-style units to the 33-story office tower.

The coronavirus pandemic has battered demand for hotel rooms, making it difficult to justify new supply, RXR CEO Scott Rechler told the publication. “Airbnb and RXR mutually agreed that under the circumstances it didn’t make sense to proceed with the project,” he said.

RXR, which has overhauled 75 Rock since it took control of the building in 2013, had positioned the building as a startup incubator.

Shared office-space provider Convene — which counts RXR and Brookfield among its backers — has 28,000 square feet in the building. The startup was also tapped to run “Club 75,” an invitation-only penthouse lounge at the top of the tower.

WeWork was set to manage 90,000 square feet of shared-office space at the property, but the Business Insider report did not provide an update on the status of that deal.

With falling revenues, hospitality firms have been cutting staff and seeking federal relief. [Business Insider] — Danielle Balbi


Related Articles

arrow_forward_ios
From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)
The Airbnb crackdown continues: City targets three more buildings
The Airbnb crackdown continues: City targets three more buildings
Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)
Airbnb host narrowly clears hurdle in First Amendment claim against city
Airbnb host narrowly clears hurdle in First Amendment claim against city
A West Village Airbnb listing (Credit: Airbnb)
Airbnb Luxe launched without listings in one of their biggest potential markets — why?
Airbnb Luxe launched without listings in one of their biggest potential markets — why?
Gotham Organization Chairman Joel Picket with the proposed development at 130 Felix Street. (Getty, 130 Felix)
These projects just beat the rezoning deadline
These projects just beat the rezoning deadline
Seal Beach’s landmarked water tower house (Compass)
Water tower-turned-home on the Pacific offered for $5M
Water tower-turned-home on the Pacific offered for $5M
April’s occupancy levels climbed to 61.6 percent, above March’s 60.9 percent. (iStock)
Demand for short-term rentals surges past pre-pandemic levels
Demand for short-term rentals surges past pre-pandemic levels
Airbnb CEO Brian Chesky. (Airbnb, Getty)
Airbnb’s losing spree continues with $1B loss in Q1
Airbnb’s losing spree continues with $1B loss in Q1
Council member Ben Kallos and Airbnb CEO Brian Chesky (Getty, iStock)
City Council bill would tighten screws on Airbnb
City Council bill would tighten screws on Airbnb
arrow_forward_ios

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

Loading...