(Bloomberg) -- The Williamsburg Hotel in Brooklyn filed for bankruptcy as the effects from the pandemic continue to roll through the hospitality industry.
96 Wythe Acquisition LLC, the entity that owns the hotel backed by Heritage Equity Partners, listed assets and liabilities of $50 million to $100 million in its Chapter 11 petition filed in White Plains, New York. The boutique hotel is located in an area of Brooklyn which surged in popularity and rapidly gentrified over the last decade, offering views of Manhattan and some of the best restaurants and shopping in the borough.
Benefit Street Partners, the credit firm owned by Franklin Templeton, is one of its largest creditors with a $68 million disputed claim, according to bankruptcy papers. Heritage Equity Partners didn’t immediately respond to a request for comment and Franklin Templeton declined to comment.
The Williamsburg Hotel is the latest Heritage property to restructure, with 232 Seigel Acquisition LLC, a hotel development in Bushwick, seeking bankruptcy last year. Heritage Equity Partners, led by Toby Moskovits, owns a mix of residential and office projects in Brooklyn.
96 Wythe’s filing follows bankruptcies of other Brooklyn hotels in recent months as the pandemic-spurred travel halt weighs on the lodging industry. Gross operating profit per available hotel room in New York fell 136.5% last year, according to STR, a hospitality data firm.
The case is 96 Wythe Acquisition LLC, 21-22108, U.S. Bankruptcy Court, Southern District of New York (White Plains). To view the docket on Bloomberg Law, click here
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