Several big name properties have fallen behind on their debt or closed
by Chris McGinnis
San Francisco Chronicle
A large number of U.S. hotels temporarily closed their doors as bookings dried up last spring due to the coronavirus pandemic. And as fall approaches, it looks like a significant number of them might not be able to reopen as expected even if business starts to pick up to a healthy level again.
Although big banks and other lenders often allowed some flexibility for strapped hotels to make their mortgage payments during the pandemic, their patience is running low and foreclosure is looming for some major urban properties.
New York City, which has seen a boom in new hotel openings in the past few years, is now seeing a boom in permanent closings. Take, for instance, the Omni Berkshire Place, a classic business travelers’ hotel at Madison Ave. and 52nd Street. Go to its website and you’ll see a notice that the property is “permanently closed.”