In the News: The Roxy and Soho Grand owner is tossing in towel

The Real Deal reports that the owner of the Soho Grand and The Roxy hotels is handing over the keys to both hotels to the lender, according to notes on the hotels’ securitized loan. I don’t think I need to emphasize that this is bad news for the neighborhood. Both hotels have been fixtures here for more than two decades, creating some buzz but more importantly, adding life and light to the streetscape.

Billionaire Leonard Stern’s Hartz Mountain Industries “’no longer wants to fund the losses’ at the properties, and has requested to transfer the hotels to the special servicer on the $110 million loan via a deed-in-lieu of foreclosure, according to a watchlist note from January,” the story says. “Hartz Mountain hasn’t missed a payment on the interest-only loan and is current through January, according to notes on Trepp [the company that provides data on the financial industry]. But the hotel’s financials were severely impacted by the Covid-19 shutdown and its ability to cover its debt service has decreased significantly.”

The Roxy opened as the Tribeca Grand in 2000, four years after the Soho Grand opened just north of Canal on West Broadway. The Tribeca Grand was rebranded in 2015 as The Roxy Hotel Tribeca and given a makeover intended to invoke both the ’20s and the ’90s — the Roxy movie theater and the Roxy dance club. That’s when Paul’s Cocktail Lounge, The Django jazz club and Blackstones salon opened, along with the movie theater. When the 352-room Soho Grand opened in 1996, it was the first boutique hotel in the neighborhood.

We have already seen the closure of three hotels in Fidi, including the AKA Wall Street, and the AKA Tribeca on Chambers shows no sign of opening (I’ve been in touch with the PR firm and they said they have no word.)

From The Real Deal: “As of the fall, 80 percent of New York City hotels, backed by $4 billion in securitized mortgages, were showing signs of distress. Hotel Association of New York City CEO Vijay Dandapani at the time said it would be a ‘great’ outcome if half of the city’s 640 hotels survive the pandemic.”

 

20 Comments

  1. Well this is very upsetting for the neighborhood, indeed.

  2. the city has to tourist, filled with crime and homeless. The city is in bad shape. We need new leaders to clean this city up. Not catch and real bail reform. Very sad to hear this.

    • The only nonviolent offender who caused this was the one who knowingly lied “this is going to go away by April.”

    • The lack of tourists has nothing to do with crime and homelessness. Both were far larger when these hotels opened. The crime is still way lower than it was in the late 90s/early 2000’s. There are no tourists because everything has closed. What in the world would tourists do with indoor dining and theatres and other businesses closed? And in winter. We need to safely reopen when we can – and then we will need a massive marketing campaign and special events. When the city is filled with people again and there are jobs, the crime rate will drop again. Lastly – the Roxy sucked. It SHOULD have closed a log time ago. I am not sentimental about businesses struggling because they were awful. Let something else open in its place.

      • Hi Charles,
        I agree Tourist have nothing to do with crime and homelessness. But I definitely have to disagree about the crime. It is way way up. We have mentally ill homeless in hotels all over downtown and in our streets. Our ” wonderful” Mayor has put them all around us without community board meetings. This definitely has to do with assaults on our streets and trains. The past 6 plus months gun violence is way up ( no bail) also robberies. Our city all around isn’t safe. Hopefully when we open up in the near future it will change.

        • I agree crime is way up. But the data shows it’s still less than it was in the late 90s/early 2000s. And that is my experience living here since 1992. I am just saying we need to have perspective – as large cities go it’s still quite safe – and I continue to believe that when there are businesses reopened, pedestrians all around, and jobs for people, crime will reduce. That being said – I agree there are some policy decisions around policing, bail reform, and homeless services that need to be fixed. All of the above is contributing to the overall issues. But all bets are off until we have people out and about again.
          Separate note – I am surprised to see the fans of Roxy – but to each their own I guess!

          • The city has serious problems and we as residents have to pick the right mayor to get things back on track. I am hoping Ray MacGuire or someone with a moderate and fiscal conservative view can be that leader.

          • Charles most likely lives in a Rent Control Loft for peanuts that’s why He thinks everything is ok.

      • Sorry Charles, I’ve never met a tourist who didn’t mind getting mugged or harassed by crazy homeless people. I think you are willfully denying reality because it doesn’t fit your anti-racist political agenda.

      • What are the criticisms of the Roxy? I’ve never stayed at the hotel, so I can’t speak to that aspect, but was a regular attendee of the jazz, both in the lounge and The Django, and thought both were great. Fantastic music, great atmosphere, and friendly attentive staff. I will be very sad to lose those jazz music venues.

        Also loved the pastries at Jack’s.

  3. This is very bad news. I love the Roxy. Jazz upstairs and more jazz at the Django downstairs. It’s been one my favorite things about this neighborhood.

    I hope they will change their mind, or that someone else takes over the business and keeps the music going.

  4. It truly isn’t that sad. I enjoyed the Roxy site more when it was a nursery on the south side of the lot and a parking lot on the north. Miss getting Xmas trees there.

    And when the soho grand was going up I remember the arson across the street to get the small shops out. My dry cleaners and my shorts up in flames.

  5. The Lockdown has to end soon. Otherwise the City will have no

    Restaurants, Clothing Stores, Theater, Entertainment, Tax

    Revenue, Business Offices, Universities, Sports, etc.

  6. The Roxy and Soho Grand have been great neighbors over the years. Many happy hours spent at the Roxy. Can’t beat the $1 oyster special. They were always a big supporter of all of the neighborhood fundraisers too. The Django was a great place with live music for a night out.

    • I was going to say the same thing about the $1 oysters! Great minds think alike! :) TribecaMoms gonna miss Roxy and Soho Grand. Never patronized Soho Grand but they were nice tho. I had a project for work a few years ago related to allergen study, the hotel let me and coworker go in to interview their restaurant workers and collect data.

  7. Whatever you do, make sure not to criticize the politicians responsible for this. You wouldn’t want to be cancelled, or hauled off. Deblasio and Cuomo, they’re the greatest!

  8. What a huge loss to the community. Travel industry, restaurants, should have been helped during pandemic. People are not congregating or traveling unless necessary. They needed aid and didn’t get any.

  9. I adored the Roxy, especially the movie theater and the lobby bar. I truly hope that the lender will find a way to re-open when COVID-19 protocols permit.

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