Hotelier Sam Chang’s businesses snagged millions in PPP loans

Many loans went to individual NYC hotels controlled by McSam Hotel Group

New York /
Oct.October 21, 2020 04:35 PM
Sam Chang and TownePlace Suites by Marriott at 324 West 44th Street (Google Maps)

Sam Chang and TownePlace Suites by Marriott at 324 West 44th Street (Google Maps)

Properties tied to New York hotel mogul Sam Chang secured millions of dollars in government aid that was intended to help small businesses impacted by the coronavirus.

At least eight companies controlled by Chang nabbed between $2.8 million and $7 million in small business loans, CNBC reported. Chang founded the McSam Hotel Group, which made its name developing budget hotels along Manhattan’s West Side.

Last year, Chang — who has claimed previously that he’s worth $200 million — said he would retire to focus on the obscure hobby of pigeon racing.

Most of the loans went to limited liability companies tied to single properties owned by Chang, according to CNBC. These properties included a TownePlace Suites by Marriott in Manhattan, a Holiday Inn near John F. Kennedy Airport in Queens, and a Radisson in Grand Island, New York.

A McSam spokesperson told CNBC that the loans were used to help retain employees at some of its hotels
.
“A number of these sites provided accommodations for health care professionals and others working for Covid-related purposes,” according to the spokesperson. “The PPP loans enabled the hotels to retain much of their workforces for a longer period of time and to continue operating despite extraordinary drops in guests and revenue.”

More than 660,000 businesses have been approved for the Paycheck Protection Program (PPP), run by the Treasury Department and the Small Business Administration, with both large and small companies receiving money.

A number of high-profile New York real estate developers secured PPP loans, including Extell Development, Pyramid Management Group and Thor Equities.

[CNBC] — Keith Larsen


Related Articles

arrow_forward_ios
Nationally, just under one-third of office workers have returned to the office spaces they occupied before the pandemic. (iStock)
Employers face uphill battle luring staff back to the office
Employers face uphill battle luring staff back to the office
The Closing: Janice Mac Avoy
The Closing: Janice Mac Avoy
The Closing: Janice Mac Avoy
Washington Prime Group CEO Lou Conforti (Twitter)
Washington Prime Group files for Chapter 11 bankruptcy
Washington Prime Group files for Chapter 11 bankruptcy
Renderings of Greenpoint Landing in Greenpoint, 141 Willoughby Street in Downtown Brooklyn and 45-57 Davis Street in Long Island City (Photos via OMA, SLCE Architects and J Frankl Architects)
These were the top outer-borough loans in May
These were the top outer-borough loans in May
The Savoy Hotel in London, UK in 1980 (Getty)
UK hospitality employers could cut half a million jobs
UK hospitality employers could cut half a million jobs
The New York Life Sciences and Biotechnology Center at First Avenue and 41st Street (NY Life Sciences)
Life sciences leasing breaks annual record in five months
Life sciences leasing breaks annual record in five months
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
Richard Segal of Seavest Investment Group, David Marx of Marx Development Group and 902 Quentin Road in Brooklyn (Photos via Seavest Investment Group, Marx Development Group and VRMNY)
Westchester firm buys $54M Brooklyn medical building
Westchester firm buys $54M Brooklyn medical building
arrow_forward_ios

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

Loading...