Developers behind the Williamsburg Resort, an 147-area boutique lodge found in the gentrified Brooklyn neighborhood, have put the property into individual bankruptcy, the most up-to-date lodge tipped into chapter 11 during the coronavirus pandemic.
A organization powering the lodge, 96 Wythe Acquisition LLC, filed for chapter 11 protection Tuesday in the U.S. Bankruptcy Court in White Plains, N.Y., amid a dispute with a loan company that has reported the developers defaulted on a multimillion-dollar financial loan utilized to entire building of the lodge in 2017.
The personal bankruptcy filing is the most current signal of trouble for New York City’s hotel market, strike tough by the pandemic. The Williamsburg Lodge follows the fates of Manhattan’s historic Martinique hotel and Brooklyn’s Tillary Resort, which filed for chapter 11 security in December.
The Williamsburg Hotel, like other resorts in New York Metropolis, has struggled in the course of the coronavirus pandemic to generate plenty of profits to each function in the black and fork out down existing credit card debt, stated Bradford Cohen, a law firm defending 96 Wythe Acquisition versus claims by its loan provider.
The hotel will continue on functioning as normal during the chapter 11 situation, which it hopes to use to restructure its debt on the constructing and fork out creditors, he claimed.