This week's announcement of the permanent closure of the iconic 44-story Hilton Times Square hotel in the heart of New York City was a wake-up call for the embattled hospitality industry, especially in urban markets suffering from a coronavirus-driven tourism drought.
"Most hotels are using capital reserves to help cover interest payments in the near term and the vast majority of hotels in New York City have missed debt service coverage tests that will result in cash flow sweeps and will limit the ability, absent lender agreement, to get loan extensions that would normally be automatic," said Doug Hercher, managing director and principal at Robert Douglas. "This is the tip of the iceberg.
Broadway is always a natural draw for international tourists, and staying at a hotel nearby is often part of the experience. But with shows not expected to return to the Great White Way until next year, hotels near the biggest theaters remain nearly empty. "Many hotels will definitely close, particularly those that originally were conversions from residential to hotel and are located in more residential neighborhoods," Hercher said, explaining that it's often easy to convert those hotels back into apartments.
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Call Deblasio
The answer to the article is not about covid but rather the fact that there is poor leadership both from the mayor and the governor of New York. The problem is nobody wants to be in the big Apple. It's not safe!!! People are bailing!!!
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Source: Reuters - 🏆 2. / 97 Read more »