The owners of the recently reopened Crowne Plaza Hotel in Times Square filed for capter 11 bankruptcy protection Wednesday in an effort to resuscitate the ailing and lawsuit-plagued business, The Real Deal reported. Andrew Penson’s Argent Ventures wants to reorganize the finances of the hotel’s home, 1601 Broadway, having gained control of the 46-story tower in the heart of Times Square by vanquishing office giant SL Green in court and replacing Vornado Realty Trust. Penson had elbowed his way into the marquee property by buying — at a steep discount — the mezzanine debt on which Vornado had defaulted. The debt is $526 million on the 795-room hotel, 196,300 square feet of office space and 17,800 square feet of retail, according to bankruptcy filings. Almost all of that — $519 million — is owed to senior and mezzanine lenders. Some $418 million in senior debt has been delinquent since April 2020, according to bankruptcy filings. The hotel, which occupies floors 15 through 46, closed the previous month when COVID arrived. It reopened last month. While tourism to New York City has rebounded substantially, the pandemic’s effects linger in the hospitality industry, which still employs fewer people than it did in 2019.
