Midtown hotel to close forever; office conversion possible

Omni Berkshire Place shutters as industry’s occupancy rates remain well below normal

TRD New York /
Jun.June 12, 2020 09:04 AM
21 East 52nd Street (Google Maps, iStock)

21 East 52nd Street (Google Maps, iStock)

As the coronavirus continues to wreak havoc on the lodging sector, the Omni Berkshire Place hotel in Manhattan will close for good.

The announcement, made to loyalty members, came from the Midtown hotel’s parent Omni Hotels, which is owned by billionaire Robert Rowling’s TRT Holdings, Bloomberg reported.

TRT Holdings plans to keep the 399-room hotel property, which is in the rezoned Midtown East district and could be converted to office space. In 2017, New York City overhauled Midtown East’s outdated to encourage office development and renovation.

After stay-at-home orders were issued in March in response to the coronavirus, hotel occupancy rates in the city fell to as low as 15 percent — even as many hotels shuttered and were removed from the metric. Omni has also temporarily closed its hotel in Chicago.

National occupancy rates rose to 36.4 percent in the first week of June.

Occupancy rates in New York City improved slightly in May. But after raucous protests were met with a curfew in the first week of June, New York City saw occupancy tick down to 47.1 percent from 47.6 percent in the last week of May. Revenue per available room, a key metric for performance, also fell, from $59.41 to $57.77.

New York City, where hotels were used to temporarily house homeless people as Covid-19 spread through the shelter system. was one of just seven of the top 25 markets in the country where occupancy surpassed 40 percent, including Norfolk/Virginia Beach, Phoenix and Philadelphia. [Bloomberg] — Georgia Kromrei


Related Articles

arrow_forward_ios
Banana Republic CEO Mark Breitbard and Tishman Speyer CEO Rob Speyer (Breitbard by Neilson Barnard/Getty Images for GQ; Speyer by Drew Angerer/Getty Images; Banana Republic via Google Maps)

Banana Republic sues to stay in Rockefeller Center

Banana Republic sues to stay in Rockefeller Center
Lisbon

Landlords slow to embrace Lisbon’s rent guarantee program

Landlords slow to embrace Lisbon’s rent guarantee program
After high demand from renters, @NYSHCR extends application period for relief program by one week (iStock)

New York extends rent-relief window one week

New York extends rent-relief window one week
Brookfield's Ric Clark (Getty)

Brookfield, creditors reach deal on REIT’s $6.4B credit facility

Brookfield, creditors reach deal on REIT’s $6.4B credit facility
Zillow's Dan Spaulding and Rich Barton (Images via Zillow)

Zillow’s employees can work remotely forever

Zillow’s employees can work remotely forever
Renderings of Mott Street by Rockwell Group

Outdoor dining goes professional

Outdoor dining goes professional
Unibail-Rodamco-Westfield CEO Christophe Cuvillier, Westfield Century City in Los Angeles and Westfield World Trade Center in New York (Getty, iStock, Google Maps)

Unibail-Rodamco sees 15% decline in US mall rents after offering deferrals

Unibail-Rodamco sees 15% decline in US mall rents after offering deferrals
WeWork CEO Sandeep Mathrani (Wikipedia Commons)

WeWork hires help to fill vast empty spaces from NYC to LA

WeWork hires help to fill vast empty spaces from NYC to LA
arrow_forward_ios

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

Loading...