Hilton Times Square has been closed since March, and the hotel is laying off all its 200 or so employees in October.
The 478 room hotel closed due to Covid-19, and the owner, Sunstone, has not made mortgage or ground lease payments since March/April.
You can access the Hilton Times Square web page here.
Here’s an excerpt what the Sunstone told to WSJ:
A spokesman for Sunstone Hotel Investors Inc., which controls the hotel, said in an email the company made the filing to indicate that layoffs might last longer than six months. He said the filing “was not intended to imply that there is a permanent closure.” He added that a “definitive reopening date has not been determined or established and will be impacted by negotiations with our lender, as well as market conditions.”
Here’s the Warn-notice that the hotel filed:
The value of the hotel, per Sunstone’s filing, is lower than the amount of the outstanding loan. The owner may turn in the keys to the lender, who then decides what to do with the property.
Accommodation demand in the most market is distressed and especially in New York that heavily relies on international guests who are either banned from arriving or need to quarantine upon return to their home.
There will be many hotel foreclosures and deflags in the next 12 to 18 months. The lenders may find it easier to either write down the loans rather than taking over the properties or, if taking over, allow the operations to continue under the current brands.