TRD Insights: These hotel businesses got big PPP funding

Gaw Capital’s Standard High Line in NYC, Steve Witkoff and Howard Lorber’s West Hollywood Edition in LA and SoftBank-backed Oyo Hotels among scores that each received $5M+

TRD NATIONAL TRD INSIGHTS /
Jul.July 08, 2020 03:21 PM
From left: Gaw Capital Partners’ Goodwin Gaw, Howard Lorber of New Valley Group, Oyo CEO Ritesh Agarwal, Soho House's Ron Burkle, and Steven Witkoff of Witkoff Group (Getty)

From left: Gaw Capital Partners’ Goodwin Gaw, Howard Lorber of New Valley Group, Oyo CEO Ritesh Agarwal, Soho House’s Ron Burkle, and Steven Witkoff of Witkoff Group (Getty)

More than 8,100 hotel businesses across the country received federal coronavirus assistance of $150,000 or more through the Paycheck Protection Program.

The data was part of the government’s massive release on Monday of information on PPP funding recipients.

By number of jobs retained, California (86,000), Florida (55,000), New York (46,000), Texas (39,000) and Illinois (18,000) were the states where lodging businesses received the most PPP assistance from the Small Business Administration.

In total, 81 lodging borrowers received loans of $5 million or more, while another 1,200 received loans between $2 and 5 million.

In addition to supporting individual hospitality properties in an industry that has been decimated by the pandemic, PPP funds went to hotel owners, management companies and even startups like Softbank-backed Oyo Hotels. Oyo received a total of between $5.7 and $12 million through three entities registered at its U.S. headquarters in Dallas, for the purpose of retaining 561 jobs.

The private members club Soho House received as much as $22 million in PPP funds (or perhaps as little as $8.7 million, due to peculiarities of the data) for five locations in New York, Miami, Los Angeles, and Chicago, according to Bloomberg. The company also has properties around the world.


View chart here

PPP recipients of $150,000 or more in the traveller accommodation industry also included 150 in the casino industry, 100 in the bed-and-breakfast sector, and another 500 that were categorized in “other” subsectors.

Reliance on the SBA data’s North American Industry Classification System industry code may lead to the omission of some hotel businesses. For example, the borrower entity for Sapir Corp.’s NoMo Soho hotel, which received a $2.9 million PPP loan, according to other disclosures, is categorized as an “Office Administrative Services” business in the data.

Some notable individual hotels that received loans of more than $5 million include:

CIM Group’s 391-key the Dominick at 246 Spring Street in Manhattan, formerly known as Trump Soho, through 246 Spring Street (NY), LLC (328 jobs retained).

GFI Group’s 286-key Ace Hotel at 20 West 29th Street in Manhattan, through 1186 Broadway Restaurant LLC (417 jobs retained).

Gaw Capital’s 338-key Standard High Line at 848 Washington Street in Manhattan, through GC SHL, LLC (468 jobs retained).

Standard High Line at 848 Washington Street in Manhattan

Standard High Line at 848 Washington Street in Manhattan

Steve Witkoff and Howard Lorber’s 190-key, 20-condo West Hollywood Edition at 9040 Sunset Boulevard in Los Angeles, through West Hollywood Hotel LLC (401 jobs retained).

Hotel companies that got a single PPP loan of more than $5 million include New York-based Denihan Hospitality Group (494 jobs) and Chicago-based Arbor Lodging Management (formerly NVN Hotels, 500 jobs).

West Hollywood Edition in Los Angeles

West Hollywood Edition at 9040 Sunset Boulevard

Other companies got their PPP money in several pieces. Pasadena-based XLD Group, a subsidiary of China’s Sichuan Xinglida Group, received three loans totalling between $9 million and $20 million, to retain 1,098 jobs. New York-based EOS Investors received four loans totalling between $4.15 million and 9.35 million, to retain 576 jobs. Hotel operator MCR Hotels received between $20 million and $44 million through eight LLCs registered to its Dallas office, to retain a total of 2,342 jobs.


View chart here

See anything interesting in the data? Contact Kevin Sun at [email protected]


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