Williamsburg Hotel Is Newest Individual bankruptcy In Battered New York Lodging Industry
Developers powering the Williamsburg Lodge, an 147-home boutique hotel located in the gentrified Brooklyn community, have positioned the house into bankruptcy, the hottest resort tipped into chapter 11 all through the coronavirus pandemic.
A organization guiding the resort, 96 Wythe Acquisition LLC, filed for chapter 11 safety Tuesday in the U.S. Personal bankruptcy Court in White Plains, N.Y., amid a dispute with a financial institution that has explained the builders defaulted on a multimillion-greenback mortgage applied to full design of the resort in 2017.
The individual bankruptcy filing is the most recent indication of difficulties for New York City’s lodge market, hit tough by the pandemic. The Williamsburg Resort follows the fates of Manhattan’s historic Martinique lodge and Brooklyn’s Tillary Hotel, which filed for chapter 11 safety in December.
The Williamsburg Lodge, like other inns in New York City, has struggled for the duration of the coronavirus pandemic to generate ample revenue to the two run in the black and spend down existing debt, said Bradford Cohen, a lawyer defending 96 Wythe Acquisition in opposition to statements by its lender.
The resort will continue working as regular through the chapter 11 situation, which it hopes to use to restructure its debt on the developing and pay back creditors, he mentioned.
