NY: Times Square’s Crowne Plaza files for bankruptcy

The Crowne Plaza hotel in Times Square reopened in November, but this Wednesday it filed for Chapter 11 of the US bankruptcy law, due to the debt they have, which amounts to 526 million dollars.

While New York City has recovered, the pandemic has deeply affected the hotel industry, which has occupancy below 2012 levels. Highgate Hotels has decided to split evenly.

Not only does the pandemic appear to have played into the 795-room hotel’s bankruptcy, but Argent attributed the financial woes to a licensing deal with Intercontinental Hotels Group to use the Crowne Plaza brand and a complex ownership structure, according to Real Deal.

as reported REPORTUR.itThe US hotel industry looks to the near future with concern as consumer prices for hotels, motels and other lodging establishments fell nearly 5% according to the government’s latest inflation report, a sign that travel demand has declined since ‘summer. (USA: surprise by lowering hotel rates that portends recession).

But the concern is growing even more because airfares have also fallen by 0.6% in recent months. According to Diariony, the price drop comes in a year when the travel industry has seen an increase in sales after a difficult couple of years due to the COVID pandemic.