The Edition Hotel in New York's times square is closing for good because of financial problems caused by the outbreak, according to Bloomberg in New York. Run by Ian Schrager, a prominent New York entrepreneur, the hotel is the latest addition to the Ian Schrager and Marriott International Edition chain, designed by Yabu Pushelberg. It has branches in London, Miami and Hawaii.
The news comes as the drops in business during the pandemic resulted in a cash shortfall that put the hotel's developer Maefield Development in default of its contract with Marriott International, according to the report. It added that the pandemic exacerbated financial difficulties the 452-room hotel was already facing – in December 2019 a group of lenders led by Natixis SA tried to foreclose on the project after issues with payments from Maefield.
Closing Public hotel temporarily was "an agonising decision. This has been an agonizing decision for me and one of the hardest things I have had to do in my entire career. Not only because it is against everything I personally believe in, but because staying open to serve our guests is in our DNA and what we live for." said Ian Schrager.
"Our industry has been severely affected by the global crisis. We're assessing the situation in real-time as it relates to our other properties, and will be updating any announcements on our websites." Said Ace Hotel, which was also affected by the Coronavirus, when the brand closed all its global outposts in early April.
Coronavirus lockdown measures are gradually easing elsewhere in the US, allowing hotels to reopen. The Santa Monica Proper Hotel in California is expected to reopen tomorrow, while regions in the New York State are slowly reopening as they meet targets.
It is yet to be seen if the hotel business can and will return to normal following the pandemic. UK architecture studio The Manser Practice has outlined how hotels will be adapted to allow social distancing when they reopen, and how future designs will be impacted by the coronavirus pandemic.
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