Time Hotel finally headed to the auction block

Vikram Chatwal and 224 West 49th Street
Vikram Chatwal and 224 West 49th Street

Vikram Chatwal’s troubled Time Hotel in Times Square is slated for a mortgage foreclosure auction later this month.

The auction for the 192-room hotel at 224 West 49th Street was already postponed twice — in October and last month — and has been pushed to Feb. 19. The hotel continues to fight a foreclosure lawsuit from special servicer LNR Partners.

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That suit was filed after Chatwal’s company, London-based Hampshire Hotels, failed to pay any interest on $55 million in loans from January 2012 onward, as The Real Deal reported.

Chatwal, who runs Hampshire Hotels, agreed to settle the foreclosure suit last May, the New York Observer reported.

The hotel owner reportedly took out a $43.1 million mortgage loan on the property from Lehman Brothers in 2005 and an $11.9 million gap mortgage loan. The debt was then combined into one $55 million loan. The loan is currently classed as 90 or more days delinquent. [NYO]Mark Maurer