Moinian Group Moves To Foreclose On Queens Holiday Inn
A foreclosure sale is hanging over yet another hotel in the city, with an auction now set for a Holiday Inn near LaGuardia Airport.
The UCC foreclosure sale of the equity interests of the hotel in Corona, Queens, is set for June, with Newmark leading the sale, The Real Deal reports. A Moinian Group-linked mezzanine lender triggered the sale, and the balance of the loan is $7.2M. The successful bidder will be responsible for the $21M senior loan on the 217-room hotel at 37-10 114th St.
An LLC previously controlled by Sun America Realty Group’s Wing Fung Chau and Aiyun Chen owns the property. Last year, Chau and Chen signed a memorandum of contract to sell it to Brooklyn’s Sam Strulovitch. Sam Chang’s McSam Hotel Group acquired the site in a $37.6M all-cash transaction in 2016.
The hospitality industry has been under enormous strain since the coronavirus pandemic began. And while many in the industry argue the worst is over, many New York City hotels have closed permanently.
The Roosevelt, the W Hotel Downtown and Maxwell Hotel have closed for good, and many more are likely to join them. Meanwhile, hotel bankruptcies are starting to pick up, including two hoteliers in Brooklyn who have filed in the last few months.
In August last year, after months of failing to meet loan payments across its portfolio, Ashford Hospitality Trust sold the Embassy Suites by Hilton in Midtown it owned for less than two years in order to meet demands from lenders. Earlier this month, Mack Real Estate snapped up seven distressed hotels in Manhattan, with the sellers taking a big loss at a UCC foreclosure auction.