Midtown hotel to close forever; office conversion possible

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

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 In 2017, New York City overhauled Midtown East’s outdated to encourage office development and renovation.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
From left: Michael Dell, Alex Rodriguez and Donald Trump along with the Trump Hotel in Washington, D.C. (Getty Images, The Trump Organization, iStock)
Firm that manages Michael Dell’s wealth finances deal for Trump Hotel
Firm that manages Michael Dell’s wealth finances deal for Trump Hotel
Capstone Equities' Joshua Zamir and Renwick Hotel at 118 East 40th Street (TripAdvisor)
New owner Capstone revives Midtown’s Renwick Hotel
New owner Capstone revives Midtown’s Renwick Hotel
Jonathan Goldstein, CEO, Cain International and 356 West 58th Street (Cain International, Google Maps)
Midtown’s Hudson Hotel slated for mixed-use redevelopment
Midtown’s Hudson Hotel slated for mixed-use redevelopment
Joseph Chetrit and 98 Montague Street in Downtown Brooklyn (Credit: Getty Images and Google Maps)
Brooklyn’s iconic Bossert Hotel facing foreclosure
Brooklyn’s iconic Bossert Hotel facing foreclosure
Related's Stephen Ross, the Gregory Hotel at 42 West 35th Street and Meadow Partners’ Jeffrey Kaplan (Getty, Google Maps, Meadow Partners)
Related sues Meadow after foreclosure on Garment District hotel
Related sues Meadow after foreclosure on Garment District hotel
Tavros' Dov Barnett and Charney's Sam Charney with 24-09 Jackson Avenue (Tavros, Charney Companies, Google Maps)
Charney, Tavros pick up stalled LIC development site
Charney, Tavros pick up stalled LIC development site
Former Daija US CEO Andrew Miller in front of 301 Park Avenue (LinkedIn/Andrew Miller, iStock)
Top exec’s exit latest blow to Waldorf Astoria’s lagging condo conversion
Top exec’s exit latest blow to Waldorf Astoria’s lagging condo conversion
Mayor Bill de Blasio (Getty, iStock)
De Blasio’s post-mayoral home has been a 4-star Brooklyn hotel
De Blasio’s post-mayoral home has been a 4-star Brooklyn hotel
arrow_forward_ios

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

Loading...