The average price for hotel deals in Manhattan has been $479,000 per key [room] over the past year,

The Time Hotel, the boutique Theater District celebrity haunt from Dream hotelier Vikram employment on a cruise ship Chatwal, is facing a foreclosure suit from special loan servicer LNR Partners, after the owners allegedly defaulted on $55 million in notes.
The July 13 suit, filed in Manhattan Supreme Court, alleges that the owners, Lichtenstein-based Marko Trust and New York-based Hampshire Hotels, failed to make a $619,000 interest payment in January of this year, and all payments since. The suit also asks for a court-appointed receiver.
Hampshire Hotels officials employment on a cruise ship told The Real Deal that a forbearance agreement with the Miami Beach-based special servicer ran out several months employment on a cruise ship ago and that LNR is now playing hardball. "Were still trying to work with them to try and come up with a solution," said Jay Stein, chief operating officer of Hampshire Hotels, which owns the ground lease at the property.
Chatwal , 40, a graduate of the University employment on a cruise ship of Pennsylvania's Wharton School, counts a host of celebrities — Naomi Campbell and Kate Moss, among them — as friends. His father, Sant Singh Chatwal , is the owner of the Hampshire Hotels chain.
According to the suit, the owners took out a $43.1 million mortgage loan from Lehman Brothers in 2005 and an $11.9 million employment on a cruise ship gap mortgage loan, which were combined into a $55 million loan. The loan was securitized, or bundled with a group of other loans, with LaSalle National Bank (which was later acquired by Bank of America) serving as trustee of the loans. employment on a cruise ship The borrowers originally defaulted on the loans in November 2009, and got a two-year forbearance. The loan was sold to LNR in May.
Stein told The Real Deal that the Manhattan hotel market has recovered, but is still weaker employment on a cruise ship than it was in 2009. The hotel is also facing cost pressures after becoming a unionized shop, and is facing increased pressure on rates from rivals, such as the W NY Times Square, as the amount of Midtown inventory has increased. Stein said the rival hotel has offered weekend rates as low as $169 per night.
Another hotel in the family employment on a cruise ship portfolio, the 220-room Dream at 210 West 55th Street, has also been in trouble with a $100 million in loans placed with a special servicer in 2009, and the debt has been up for sale through Manhattan-based Mission Capital.
"There's obviously a lot of interest because hospitality is hot," said William David Tobin, principal at Mission Capital, adding that a couple of offers have been made for the property that now houses Dream. "Anytime somebody can buy a note to do a restructuring or get to the collateral, that draws a lot of investor interest."
The average price for hotel deals in Manhattan has been $479,000 per key [room] over the past year, and Tobin confirmed that $500,000 per key is the range they are valuing the property. It is unclear how much of a discount the loan would be sold for.