The Financial District Holiday Inn may be the tallest in the world, but that distinction hasn’t been enough to keep it afloat amid a failed sale and foreclosure.
The 50-story hotel at 99 Washington Street is for sale, along with the 8,500-square-foot St. George Tavern next door, Crain’s reported. Chinese developer Jubao Xie, who previously tried to sell the hotel in 2017, is seeking $187 million in a sale of both properties.
Eric Anton of Marcus & Millichap is marketing the sale.
Xie may have an uphill battle in selling the hotel, as it is facing foreclosure. Three loans connected to the property have been delinquent since August 2020, according to Trepp data. Crain’s reported the building was more than 90 days delinquent on $87 million in debt by December 2020, making it one of the most distressed hotels in the city.
In September 2018, Xie refinanced the property with a $137 million mortgage. Ladder Capital provided the 10-year, non-recourse, interest-only, fixed-rate loan at the 492-key hotel. Prior to that, Xie was shopping the hotel with an asking price in excess of $300 million.
Xie developed the hotel with Sam Chang before taking control of the property in 2014. According to Crain’s, the IHG-operated hotel had an occupancy rate of 90 percent when the 2018 refinancing took place.
There’s no shortage of indebted Holiday Inn properties on the market in New York City. Last week, Crain’s reported Watermark Capital was exploring a sale of the 226-key hotel at 125 West 26th Street in Chelsea. It’s not clear how much Watermark is seeking, but the investment firm purchased the hotel from Magna Hospitality for $113 million in 2013.
Amid the writing on the wall of the hotel industry, Chan has been on a selling spree in recent months. His McSam Hotel Group in October sold 350 West 39th Street in the Garment District or $166 million, while 100 Greenwich Street sold to Concord Hospitality for $69 million.
The deals followed other sales by the prolific hotel developer, who has signaled an intent to retire, only to keep on being involved in transactions.
[Crain’s] — Holden Walter-Warner