W Hotel in downtown Manhattan closes forever

The 217-key establishment will lay off 137

New York /
Jul.July 17, 2020 10:20 AM
The W Hotel at 8 Albany Street (Google, Facebook)

The W Hotel at 8 Albany Street (Google, Facebook)

The W Hotel in downtown Manhattan is the latest to close its doors for good.

The 217-key hotel at 8 Albany Street, which boasts suites with walk-in rainforest showers and reflective snakeskin tiles, will shut down Oct. 13, Bisnow reported. According to a notice filed with the state by Starwood Company & Resorts, 137 hotel workers will be let go.

Hotels have been devastated by the coronavirus. The industry saw dismal occupancy rates in March before a slight rebound after many establishments closed, but rates nationally have stalled in July.

In New York City, occupancy levels — which do not take into account closed hotels — have fallen for six straight weeks after ticking up in May. And hotels that are open are earning less than usual — revenue per available room fell nationally by 3.3 percent, to $44.67 from $46.21, week-over-week.

Hotels have looked for alternatives as the pandemic has brought travel to a near halt. In New York City, ritzy hotels housed medical staff and non-critical patients in the height of the coronavirus outbreak in March and April. After an outcry from homeless advocates and health experts, the New York city government moved thousands of homeless persons living in congregate shelters into hotel rooms. That has had some unintended consequences in Midtown.

The re-envisioning of hotel space in New York City could take several paths. New York University was scouting for additional dorm space as it prepared for classes in the fall, while one Midtown hotel that closed in June hinted that it was ripe for conversion to office space. [Bisnow] — Georgia Kromrei


Related Articles

arrow_forward_ios
From left: Stephen Schwarzman, chairman, Blackstone; Barry Sternlicht, chief executive officer, Starwood Capital Group (Getty Images, Brookfield Asset Management/Illustration by Steven Dilakian for The Real Deal)
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Blackstone, Starwood to pay $1.5B for WoodSpring Suites properties
Thompson Austin at 506 San Jacinto Boulevard, Austin, Texas (Hyatt)
Don’t call it a comeback: Austin hotels rebound but building never slowed
Don’t call it a comeback: Austin hotels rebound but building never slowed
Michael Medzigian, chairman and managing partner, Watermark Capital Partners (Watermark Capital Partners, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
Watermark Capital looks to sell indebted Holiday Inn in Chelsea
Ben Hakimian, founder, Hakimian Organization; 244 West 49th Street (Google Maps, KSU)
Hakimian changes Midtown hotel plans to residential
Hakimian changes Midtown hotel plans to residential
Ben Hakimian and Naveen Shah of Navika Capital Group (Navika Group of Companies, LoopNet, iStock, KSU)
Hakimian sells hotel at 75 Wall Street
Hakimian sells hotel at 75 Wall Street
(iStock)
Canada’s biggest city has just 3,200 homes for sale, an all-time low
Canada’s biggest city has just 3,200 homes for sale, an all-time low
The home to th Oriental Mandarin Hotel at Columbus Circle (Google)
Mandarin Oriental NY majority stake sells for $98M
Mandarin Oriental NY majority stake sells for $98M
Midtown DoubleTree sells at staggering loss
Midtown DoubleTree sells at staggering loss
Midtown DoubleTree sells at staggering loss
arrow_forward_ios

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

Loading...