Bloomberg reported yesterday that Marriott has given notices to employees that it will cease operating EDITION Times Square, which opened last year, on August 13, 2020.
The lender of the mixed-used property of which the 452-key hotel is part of begun foreclosure procedures in December.
You can access EDITION Times Square’s website here.
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Here’s an excerpt from Bloomberg (access their piece here):
Marriott warned owner Maefield Development in March that a cash shortfall due to the outbreak could put the developer in default on its contract with the lodging giant, new documents in an ongoing foreclosure proceeding show. The hotel is part of a mixed-use property once appraised at $2.4 billion, according to a 2018 report from Moody’s Investors Service.
Maefield ran into challenges at the property before the pandemic brought the curtains down on Broadway and emptied Times Square of tourists. In December, a group of lenders led by Natixis SA sought to foreclose on the project, which includes the 452-room hotel, retail space and digital signage.
Here’s EDITION brand info:
Download (PDF, 1.78MB)
This won’t be the last reflag or hotel that won’t open after its operations were suspended due to the Covid-19 pandemic. There will be several.
Many of these recent developments and deals were priced to perfection and financed by massive loans that will eventually go into default. The banks will then take over and decide what to do with the properties and with whom. Some may close while others may continue under their current brands and operations. Eventually, buyers will emerge.
Marriott came up with this EDITION-concept to have a lifestyle brand to compete with Starwood’s hugely successful W. It is essentially a W for grown-ups without unnecessary bling.
The launch of this brand was an utter disaster after Honolulu EDITION’s owner came in at midnight, changed the locks, and threw Marriott management out. Istanbul property was soon after its opening reflagged under Hyatt’s brand. EDITION Bangkok decided to change its flag to Orient Express before even opening (it still hasn’t under the Accor’s OE).
I have stayed at EDITION Barcelona twice and Abu Dhabi once, and I have enjoyed both. I had dinner with friends at the London property, and it took three/four tries for the waiter to get our bill right (there were items belonging to some other party).
It is interesting to see if this EDITION Times Square will reemerge under different brand on August 14, 2020, or if it will close its doors.