UPDATED, Sept. 23, 4:45 p.m.: The operator of the Martinique hotel in Manhattan has filed for Chapter 11 bankruptcy protection.
Herald Hotel Associates, which runs the boutique hotel at 49 West 32 Street in Koreatown, this week filed a petition with the U.S. Bankruptcy Court for the Southern District of New York. The Martinique is part of Hilton Hotels’ Curio Collection portfolio.
The company owes between $10 million and $50 million, and has estimated assets of between $100 million and $500 million, according to the filing.
The hotel’s 123 employees were laid off as of March 18 for a “temporary plant closing,” according to the notice filed with the state.
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With the filing, the company is trying to negotiate with its creditors to get back on its feet, said Scott Markowitz, an attorney for Herald Hotel Associates. JPMorgan Chase, from which the company obtained a $14 million mortgage, is among the biggest creditors, he said.
“We believe Chapter 11 will enable the hotel to continue to thrive as it has for many years,” he said.
The hospitality industry has been among the hardest hit by the pandemic, with nearly half of those employed by hotels, bars and restaurants losing their jobs this year.
Even bigger hotels aren’t immune to the downturn: Hilton announced that it would permanently close its 478-room hotel in Times Square as of Oct. 1.
The Courtyard by Marriott in Herald Square also shuttered its doors as of Aug. 24.
UPDATE: This story was updated to add a statement from an attorney for Herald Hotel Associates.