The wave of closures hitting New York City hotels has claimed another victim: Herald Square’s Courtyard by Marriott.
The hotel’s owner recently filed a notice with the New York State Department of Labor detailing its plan to lay off 59 employees, who have been furloughed since March 21. The reason for layoffs is permanent closure of the 167-room hotel, located at 8 Herald Square, due to “unforeseeable business circumstances prompted by Covid-19.” Layoffs will occur between Sept. 24 and Oct. 8, according to the filing.
The hotel’s owner, Courtyard Management Corporation, and the hotel’s general manager, Alpha Midiaou Barry, could not be immediately reached for comment Monday.
The hotel’s demise is part of the ongoing trend in the pandemic-stricken hospitality industry. Nearly two dozen hotels — including six operated by Marriott — filed similar notices with the Department of Labor in June. More than $1 billion in commercial mortgage-backed securities loans on hotels have gone unpaid. And occupancy rates in New York City remain lower than the national average, putting pressure on hospitality firms’ bottom lines.
Most recently, the 478-room Times Square Hilton also announced its permanent closure and laid off 200 employees.