The Party's Over for Hoteliers as Banks Pull Loans

Good news for the forces of sanity and sustainable development: Wall Street bankers are pulling the rug out from under hoteliers, taking away the loans that have been subsidizing all these hideous hotels they keep throwing up all around the city. That's what happened to Sam Chang, head of the McSam Hotel Group, New York City's largest hotel developer. "The city is being overbuilt," Chang says, citing a coming room glut that will drive down rates.

Though BD has just received the rubber stamp from the Landmarks Preservation Commission for an unnecessary hotel at 145 Perry Street, one that would totally alter the character of that quiet neighborhood, the changing real estate climate will hopefully lead the banks to reconsider and tell Born and Drukier to go take a flying leap from the top of the Pod Hotel.

BD also needs a loan in order to gut renovate the Chelsea, or whatever the hell it is they plan to do to us, and now it's not looking so good for them in that respect. As Stanley Bard said in his recent Video statement at the Museum of the City of New York , "We're not always going to be in this bubble. We're not always going to be in this economic boom, hotel wise." Well, it looks like his words are coming true already. BD needs to figure out who their clientele is (hint: adventurous artistic types who want a unique New  York experience) if they want to last for long at the Chelsea. -- Ed Hamilton

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Comments

[Sherill Tippins]

The same thing happened in 1929.

The result: David Bard, Sr., became manager of the Chelsea.

Depressions have always benefited the residents of the Chelsea Hotel.

[Old & Crappy]

totes B&D would rather spend their time posing for Vanity Fair instead of making cell phone calls to raise money.

Yeah, Stanley knew how to keep the hotel profitable during bad times and keep it creative. These bozos will drive it under.