Soho Properties, owner of the Margaritaville Resort Times Square in New York, has filed for Chapter 11 bankruptcy protection to stave off a foreclosure of the property. 

The 32-story property, which is located at 560 Seventh Ave., opened in June 2021.

Soho said the hotel has faced “challenging market conditions” related to the pandemic. 

In documents filed with the U.S. Bankruptcy Court’s Southern District of New York on July 9, executive vice president of Soho Properties Sethian Pomerantz said that the hotel has had “operating shortfalls” over the past two years. 

He added that the hotel’s performance has improved, with revenue expected to surpass $25 million by the end of next year once vacant retail space is leased. 

The bankruptcy filing has prevented a foreclosure auction of the property from moving forward, with Soho Properties now aiming to refinance the hotel’s mortgage and other loans that collectively total more than $300 million plus interest. 

The Margaritaville Resort Times Square houses 235 guestrooms and more than 34,000 square feet of retail space as well as a two-story Margaritaville Restaurant with a 32-foot replica of the Statue of Liberty. It’s also home to a rooftop-level 5 o’Clock Somewhere Bar, a LandShark Bar & Grill, a lobby coffee shop and what the hotel claims is Times Square’s only year-round, outdoor heated pool.

A May appraisal of the property pegged its value at somewhere between $266 million and $350 million.

Source: Read Full Article