Courtyard by Marriott in Herald Square to close permanently

The hotel’s parent company blamed Covid-related financial losses for the closure

TRD New York /
Sep.September 14, 2020 05:45 PM
Courtyard by Marriott in Herald Square and Marriott CEO Arne Sorenson (Google Maps, Getty)

Courtyard by Marriott in Herald Square and Marriott CEO Arne Sorenson (Google Maps, Getty)

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.






Related Articles

arrow_forward_ios
The proposal to rezone Industry City in Brooklyn was unveiled five years ago, but collapsed under political pressure (Courtesy of Industry City)

Here’s how Industry City’s controversial rezoning unraveled

Here’s how Industry City’s controversial rezoning unraveled
731 Lexington Avenue and 410 East 61st Street (inset) with Vornado's Steve Roth (Googel Maps; VNO)

Home Depot eyes former Bed Bath & Beyond space on First Ave

Home Depot eyes former Bed Bath & Beyond space on First Ave
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
J.C. Penney at the Westfield South Shore mall in Long Island and  J.C. Penney CEO Jill Soltau (Google Maps; Getty)

J.C. Penney to keep Bay Shore outpost open for now

J.C. Penney to keep Bay Shore outpost open for now
Signature Bank CEO Joseph DePaolo and New York Community Bank CEO Joseph Ficalora (Photos via Getty; Facebook; iStock)

NYC’s multifamily lenders see shares tumble in 2020

NYC’s multifamily lenders see shares tumble in 2020
The analysis predicts that office vacancies across the world will continue upward (iStock)

Report: Office market won’t return to glory until 2025

Report: Office market won’t return to glory until 2025
Korean wave pours into U.S. commercial real estate

Korean wave pours into U.S. commercial real estate

Korean wave pours into U.S. commercial real estate
The Martinique hotel (Wikipedia, Google Maps)

Operator of Martinique Hotel in Manhattan files for bankruptcy

Operator of Martinique Hotel in Manhattan files for bankruptcy
arrow_forward_ios

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

Loading...