Builders guiding the Williamsburg Lodge, an 147-room boutique resort located in the gentrified Brooklyn neighborhood, have put the property into bankruptcy, the newest lodge tipped into chapter 11 during the coronavirus pandemic.
A organization driving the resort, 96 Wythe Acquisition LLC, filed for chapter 11 defense Tuesday in the U.S. Personal bankruptcy Courtroom in White Plains, N.Y., amid a dispute with a loan company that has said the builders defaulted on a multimillion-greenback loan utilized to comprehensive design of the lodge in 2017.
The personal bankruptcy filing is the newest signal of difficulties for New York City’s hotel market, hit tough by the pandemic. The Williamsburg Hotel follows the fates of Manhattan’s historic Martinique lodge and Brooklyn’s Tillary Lodge, which filed for chapter 11 safety in December.
The Williamsburg Lodge, like other lodges in New York Town, has struggled for the duration of the coronavirus pandemic to make more than enough revenue to equally work in the black and pay out down present financial debt, mentioned Bradford Cohen, a law firm defending 96 Wythe Acquisition from statements by its loan provider.
The resort will keep on operating as usual for the duration of the chapter 11 case, which it hopes to use to restructure its credit card debt on the building and fork out lenders, he claimed.