Hilton Times Square to close permanently

Hotel struggled to make mortgage payments even before the pandemic

TRD New York /
Sep.September 02, 2020 04:35 PM
Hilton CEO Christopher Nassetta and the hotel at 234 West 42nd Street (Google Maps; Getty; Hotel Planner)

Hilton CEO Christopher Nassetta and the hotel at 234 West 42nd Street (Google Maps; Getty; Hotel Planner)

The Hilton hotel in Times Square is closing its doors permanently.

The 478-room hotel at 234 West 42nd Street disclosed its plans to permanently shutter in a filing with the New York State Department of Labor Wednesday.

The hotel’s 200 employees, some of whom had been furloughed since March, will be permanently laid off, according to the notice.

The hotel’s owner, California-based hospitality REIT Sunstone Hotel Investors, did not immediately respond to a request for comment.

Sunstone hasn’t made payments on its $77.2 million mortgage since April, according to the company’s most recent quarterly filing with the U.S. Securities and Exchange Commission from August. Sunstone also hasn’t made rent payments on its ground lease since March, and said it’s considering a “negotiated transfer” of the hotel to either its lender or the landlords.

The closure is just the latest example of distress pummeling the hotel industry since the coronavirus nearly shut down travel and tourism to the city in March.

The Times Square Hilton, however, had been struggling to make payments on its mortgage before the pandemic.

Contact Rich Bockmann at [email protected] or 908-415-5229


Related Articles

arrow_forward_ios
Ian Schrager and the Pulic Hotel at 215 Chrystie Street (Getty; Google)

$60M mezz loan on Ian Schrager’s Public Hotel is for sale

$60M mezz loan on Ian Schrager’s Public Hotel is for sale
The Martinique hotel (Wikipedia, Google Maps)

Operator of Martinique Hotel in Manhattan files for bankruptcy

Operator of Martinique Hotel in Manhattan files for bankruptcy
Courtyard by Marriott in Herald Square and Marriott CEO Arne Sorenson (Google Maps, Getty)

Courtyard by Marriott in Herald Square to close permanently

Courtyard by Marriott in Herald Square to close permanently
From left: Embassy Suites at 60 West 37th Street, Ashford Hospitality Trust CEO Douglas Kessler, Magna Hospitality Group CEO Robert Indeglia and Royalton Hotel at 44 West 44th Street (Ashford, Magna Hospitality, Google Maps)

Royalton, Garment District hotels sell at discounts

Royalton, Garment District hotels sell at discounts
From left: Holiday Inn Express at Wall Street, Cindat CEO Greg Peng and Holiday Inn Express at Times Square (Credit: IHG/Booking and Cindat)

Cindat looks to sell stake in Manhattan hotel portfolio at discount

Cindat looks to sell stake in Manhattan hotel portfolio at discount
Thor Equities’ Joseph Sitt and Palmer House Hilton at 17 East Monroe Street (Google Maps)

Joe Sitt’s Thor faces massive foreclosure suit at trophy Chicago property

Joe Sitt’s Thor faces massive foreclosure suit at trophy Chicago property
Commercial real estate indices were down compared with this time last year, but buyers still aren’t selling — yet (iStock)

Report shows how much commercial real estate has fallen

Report shows how much commercial real estate has fallen
Foreclosures may be on the horizon for New York City’s hotel market, where there’s nearly $1.5 billion in unpaid CMBS debt. (iStock)

Nearly $1.5B in NYC hotel loans are unpaid

Nearly $1.5B in NYC hotel loans are unpaid
arrow_forward_ios

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

Loading...