Topline
Margaritaville Resort Times Square Hotel, Manhattan’s branch of the Jimmy Buffett-themed hospitality empire, filed for chapter 11 bankruptcy protection Sunday night, according to online court records.
Jimmy Buffett performs at Margaritaville Resort Times Square “First Look” at Margaritaville Resort … [+] Times Square on June 10, 2021 in New York City. (Photo by Sean Zanni/Patrick McMullan via Getty Images)
Patrick McMullan via Getty Images
Key Facts
The filing came as a last-ditch effort to avoid a foreclosure auction that had been scheduled for Monday after the owner of the hotel, the New York real estate firm Soho Properties, failed to pay its debt after losing money on the hotel since its opening.
The company had filed a lawsuit in late June to try and stop the auction from going forward, but failed to convince a judge to block it; the company wrote in the filing documents that preventing the auction was the “immediate purpose” of this bankruptcy filing.
The goal of the bankruptcy is to refinance the hotel’s $167 million mortgage and re-negotiate with its mezzanine lenders.
While the hotel sports signature Buffett-themed decor, it is not actually owned by the billionaire singer-songwriter, who owns the intellectual property behind a suite of ventures run by other companies, including resorts, retirement communities, and consumer goods, according to Bloomberg.
Margaritaville Resort Times Square on June 10, 2021 in New York City. (Photo by Sean Zanni/Patrick … [+] McMullan via Getty Images)
Patrick McMullan via Getty Images
Margaritaville Resort Times Square “First Look” at Margaritaville Resort Times Square on June 10, … [+] 2021 in New York City. (Photo by Sean Zanni/Patrick McMullan via Getty Images)
Patrick McMullan via Getty Images
Jimmy Buffett performs at Margaritaville Resort Times Square “First Look” at Margaritaville Resort … [+] Times Square on June 10, 2021 in New York City. (Photo by Sean Zanni/Patrick McMullan via Getty Images)
Patrick McMullan via Getty Images
Big Number
$309 million. That’s how much debt the owner of the hotel is hoping to refinance in this bankruptcy.
Contra
The filing documents note that despite its current financial woes, “the Hotel’s revenues are improving” and are projected to exceed $25 million by the end of 2024 if and when retail space in the hotel is leased.
Crucial Quote
“Given the projections for future income, the appraised value of the Hotel, and the solid location in Times Square where tourism is reviving, the Debtor believes that a refinancing of the Hotel can ultimately be achieved within a reasonable period of time,” Sethian Pomerantz, of Soho Properties, wrote in a sworn declaration filed to the court.
Key Background
The hotel, located on Seventh Avenue in New York City, has 234 guest rooms and 34,271 square feet of retail space, according to the filing documents. In May, it was appraised at a value of between $266 million and $350 million. It employs around 75 people.
Further Reading
Margaritaville Resort Times Square Faces Wastin’ Away in Bankruptcy (Bloomberg)
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Copyright for syndicated content belongs to the linked Source : Forbes – https://www.forbes.com/sites/willskipworth/2023/07/10/nycs-jimmy-buffett-themed-margaritaville-resort-files-for-bankruptcy/