The big hotels in the Big Apple have been closing their doors due to the coronavirus crisis.
The covid-19 pandemic has led to a series of economic problems in the Big Apple, where all its sectors have been severely affected by the restrictions and limitations imposed by the state government.
New York hotels are at a breaking point due to the lack of tourists that the Big Apple has experienced since the total closure began in March of last year.
The industry after a year, has still not been able to recover and many of the iconic and renowned hotels in New York City they have closed their doors or gone bankrupt.
Recently, seven hotels in the city were in need of foreclosure and were put up for auction, as detailed by The New York Post.
The media reports that Mack Real Estate intervened and won the auction for the hotels at a great discount. According to preliminary reports, the developer paid less than 40% of the 2016 portfolio’s actual value of $ 816.3 million for the properties, all located in Manhattan.
This auction represented a strong impact for the hotel industry, which has not yet been able to see even 50% of the tourists it saw in a normal year without the restrictions due to the coronavirus pandemic.
The seven New York City hotels that were auctioned belong to a variety of neighborhoods, where they are included Times Square, Chelsea, Herald Square, and the Financial District, operating under the Holiday Inn, Hampton Inn and Candlewood Suites brands, according to The New York Post.
So far, it is unknown what will happen to the hotels after the purchase. Mack Real Estate has not responded to the media after certain questions.
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Hotel owners ask for financial support
Although New York City has begun a massive vaccination journey and reactivated much of its economic sector, tourists do not see the Big Apple as a first option on their travel and visit lists.
The tourism sector has not been able to reactivate even half of its machinery due to the restrictions on flights to New York. In addition to this, the city continues to face problems of insecurity, deterioration of the quality of life and lack of opportunities.
All these factors influence the decision of tourists not to visit New York, which generates more losses for the New York hotel and tourism industry.
At the beginning of this year 2021, the owners of the hotels in New York City asked Mayor De Blasio to grant them financial support with which they can recover part of the income they lost during the months of restrictions that the Big Apple lived through.
The hoteliers asked the mayor to suspend interest payments on real estate tax debt until the coronavirus pandemic is over.
With this request, hotel owners can have a break and stay without having to mortgage their spaces due to lack of income.
The Hotel Association of New York City reported that up to 200 hotels of the 700 that are in the Big Apple have closed their doors permanently due to the economic crisis that generated the coronavirus pandemic.
These closures include the famous Roosevelt Hotel in Midtown, iconic landmark hotel in New York City.
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