Left for dead during the pandemic, the Martinique Hotel is suddenly receiving new life from an unexpected buyer.
Burnett Equity, a developer based in Oklahoma City, purchased the shuttered hotel’s leasehold for $55 million last week, according to the New York Post. The deal will allow the hotel to reopen in the coming months.
According to the Post, the boutique Greeley Square property could begin to reopen as soon as next month. The hotel will carry the Curio Collection by Hilton brand, the same branding it held when it was forced to close amid the pandemic.
Exterior work on the hotel at 49 West 32nd Street could take between 12 and 18 months to complete, the Post reports. and Burnett is expected to spend another $60 million on renovations.
Nevertheless, the Martinique’s percolating reopening is miraculous in of itself. Operator Herald Hotel Associates filed for bankruptcy in September 2020, owing between $10 million and $50 million. The hotel laid off its 123 employees as of March 18.
The mortgage on the property fell into foreclosure in late 2020 when the leaseholder of the property died, the Post reports. Marcus & Millichap were tasked with marketing the bankrupt leasehold by the landowner, a private investor from Florida.
The leasehold was expected to be sold for between $70 million and $75 million. But the costly facade restoration and the difficulty in financing the contract resulted in an adjustment.
Despite ongoing struggles in the hospitality industry, a slew of of New York City hotels have reopened in recent weeks on the heels of a law requiring them to reopen by Nov. 1 or pay severance to out-of-work hotel employees. The Omni Berkshire Place, Grand Hyatt near Grand Central and Hilton Midtown on Sixth Avenue are among those that recently announced plans to reopen their doors.
[NYP] — Holden Walter-Warner