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New York

LuxUrban takes over two Times Square hotels

Firm restarting operations of distressed properties in fourth quarter

LuxUrban Hotels' Brian Ferdinand, (left) 59 West 46th Street, 129 West 46th Street (right) (Getty, Google Maps, Crunchbase)

LuxUrban Hotels’ Brian Ferdinand, (left) 59 West 46th Street, 129 West 46th Street (right) (Getty, Google Maps, Crunchbase)

Not one, but two Times Square hotels are getting a second chance at life with LuxUrban Hotels.

The Miami-based firm signed 35-year master lease agreements at two hospitality properties in the neighborhood, Crain’s reported. Operations at the two hotels are expected to restart in the fourth quarter, bringing a combined 292 hotel rooms back online.

One of the properties is the Hotel at Times Square at 59 West 46th Street. The property appeared headed for the auction block after the shuttered hotel defaulted on a $4 million mortgage.

Paramdeep Singh’s Premier Hotels purchased the property from Apple Core Holdings last February for $59.5 million; Apple Core had already defaulted on its own loan payments. At the time of the latest default, the closed hotel was operating as a migrant shelter.

The other property set to be run by LuxUrban is the Hotel 46 Times Square at 129 West 46th Street. Apple Core was also the former owner of the property, selling the nine-story, 27,000-square-foot building to Key Hotels LLC in 2019 for $24 million. That limited liability company appears to be connected to law firm Rivkin Adler and still owns the building.

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As of May, LuxUrban operated 22 properties across the country, accounting for almost 1,700 hotel rooms. The firm last month signed a 15-year master lease with the New York-based Chetrit Group to operate the 179-room Trinity Hotel in Downtown Los Angeles, which will reopen next month after a quarter century collecting cobwebs.

Last month, the firm also announced a 25-year master lease agreement to operate the Condor Hotel in Williamsburg.

While dozens of hotels in the city are being operated as migrant shelters, the ones open for regular business are beginning to feel the effects of a hospitality rebound. Occupancy in March was 79 percent, according to the Economic Development Corporation. It was up 9 percentage points from the previous month and was slightly higher than the February 2019 rate.

— Holden Walter-Warner

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Hotel MarketHotelsLuxUrban HotelsTimes Square