The Times Square EDITION will be ceasing operations effective August 13, 2020 and will be permanently closing. Several factors went into this decision including the COVID-19 pandemic, forcing the hotel to close.
The is the brand’s second EDITION location in New York City and we’ve confirmed that the original New York EDITIONÂ near Madison Square Park will remain with the brand.
Per Bloomberg,
Marriott warned owner Maefield Development in March that a cash shortfall due to the outbreak could put the developer in default on its contract with the lodging giant, new documents in an ongoing foreclosure proceeding show. The hotel is part of a mixed-use property once appraised at $2.4 billion, according to a 2018 report from Moody’s Investors Service.
The company is the latest Midtown hotel investor to run into trouble. Earlier this month, the owner of the Hilton Times Square wrote down the value of the hotel to less than the $77 million mortgage on the property, warning investors that it may surrender the keys to its lender.
Maefield ran into challenges at the property before the pandemic brought the curtains down on Broadway and emptied Times Square of tourists. In December, a group of lenders led by Natixis SA sought to foreclose on the project, which includes the 452-room hotel, retail space and digital signage.
Due to the COVID-19 pandemic, the property was initially temporarily closed as of March 21, 2020 with most of the employees on furlough with the intent that they’d be hired back upon reopening. However due to factors outside of the hotel’s control, the hotel will be unable to reopen and will be permanently closing.
We’ve already seen another Marriott property in the city, the Maxwell Hotel NYC Ceasing Operations Permanently which had been struggling since taking over the original W New York a few years ago.
Despite Marriott closing the property, it remains unclear the future of the property should another management company take over operating as a hotel or if it will be converted into some other type of accommodations such as condominiums.
Have you stayed at the EDITION Times Square before? Feel free to share your thoughts on the property in the comments below.Â
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So if Maefield surrenders the keys will they be be responsible for the mortgage amount not covered by the asset? Or do they do separate organizations (with no guarantees) in a manner that they can just walk away and stick the lender with the loss?