The Financial District Holiday Inn may be the tallest in the world, but that accolade wasn’t enough to keep it afloat amid a failed sale and foreclosure.
The 50-story hotel at 99 Washington Street is up for sale, along with the 8,500-square-foot St. George’s Tavern next door, Crain’s reported. Chinese developer Jubao Xie, who previously tried to sell the hotel in 2017, is seeking $187 million for the sale of the two properties.
Eric Anton of Marcus & Millichap markets the sale.
Xie may find it difficult to sell the hotel, as it faces foreclosure. Three property-related loans have been past due since August 2020, according to Trepp data. Crain’s reported that the building had been overdue for more than 90 days with $87 million in debt as of December 2020, making it one of the most distressed hotels in the city.
In September 2018, Xie refinanced the property with a $137 million mortgage. Ladder Capital provided the 10-year, fixed-rate, non-recourse, interest-only loan to the 492-key hotel. Before that, Xie bought the hotel with an asking price of over $300 million.
Xie developed the hotel with Sam Chang before taking control of the property in 2014. According to Crain’s, the IHG-operated hotel had a 90% occupancy rate when refinanced in 2018.
There is no shortage of debt-ridden Holiday Inn properties on the market in New York. Last week, Crain’s reported that Watermark Capital was considering selling the 226-key hotel at 125 West 26th Street in Chelsea. It’s unclear how much Watermark is seeking, but the investment firm bought the hotel from Magna Hospitality for $113 million in 2013.
Amid the hospitality industry’s writing on the wall, Chan has been on a sales spree in recent months. His McSam Hotel Group in October sold 350 West 39th Street in the Garment District or $166 million, while 100 Greenwich Street was sold to Concord Hospitality for $69 million.
The deals followed further sales by the prolific hotel developer, who has signaled his intention to retire, to continue to be involved in the deals.
[Crain’s] — HoldenWalter Warner