A recent string of high-visibility hotel chapter 11 filings has led investors and lenders to wonder what to expect for 2021. Recent filings include:
- Martinique Hotel, a 165-key property in Brooklyn – September 2020
- Tillary Hotel, Brooklyn, a 174-key boutique property in Brooklyn – December 2020
- Holiday Inn Resort Orlando Suites, a 777-key property in Orlando, Florida – January 2021
- Wardman Park Hotel, a 1,152-key property in Washington, D.C. – January 2021
- Eagle Hospitality REIT, filed chapter 11 petitions for 18 properties, including the Queen Mary Hotel in Long Beach, California – January 2021
In New York City, there have been many hotel closures in addition to bankruptcy filings. According to the New York Post, 2020 data released by the Department of City Planning showed 146 of the city’s 705 hotels have closed —20%. The closures account for 42,030 of the city’s 128,000 hotel rooms. Analysts cited by the Post said the hotel industry won’t fully recover to pre-pandemic levels until 2025.
Continue Reading Hotels 2021: Restructurings on the Horizon?