A lender run by the billionaire Reuben Brothers has filed to seize the Chatwal, a luxury hotel in Midtown Manhattan, after the debt went into default, Bloomberg News reported. The property’s mezzanine debt, which was loaned by the Reuben Brothers’ Motcomb Estates, is scheduled for a Jan. 17 auction, positioning the winning bidder to take control of the 76-room hotel at 130 W 44th St., where weekend rates often top $1,000 a night. The hotel is part of Hyatt Hotels Corp.’s global system, and is linked to an entity called Adams Hotels International in property records. A pre-foreclosure lawsuit filed in May lists Dubai businessman Iyer Vaidyanathan Narayan as a guarantor on the loan. A representative for Hyatt said that the property is expected to be put up for auction in January. The hotel will continue normal operations throughout a potential change in ownership, with service levels remaining intact, the representative said. The Chatwal is not the only New York hotel to grapple with lenders in recent years, as sluggish international tourism and business travel weighed on demand, and higher interest rates ramped up financial pressures. The Times Square Edition and the Margaritaville Resort Times Square Hotel have had similar issues, even as lodging demand has improved significantly from the early days of the pandemic.
