A Midtown hotel, The Herald, located at 960 Sixth Avenue and operated by LuxUrban Hotels, is facing eviction after allegedly failing to pay rent since June of last year. According to court filings, the unpaid rent totals at least $1.6 million through December. This summer, a judge approved the landlord’s request for eviction, as reported by Crain’s.
LuxUrban Hotels is contesting the eviction order, arguing that it did not receive certain documents related to the case. However, the missed payments have added pressure on the property’s owners.
The building’s landlord—a partnership led by Garment District investors Victor Tawil and Ely Cohen—was sued last week by lender Aareal Capital. The lawsuit claims that a $60 million mortgage on the 18-story building has gone into default after the owners failed to pay off the remaining $55.2 million when the loan matured on August 15. This was the fourth extension of the original due date set in 2021. The complaint also states that July’s $368,000 debt-service payment was missed and a reserve account meant to cover shortfalls was not maintained.
None of those involved in the dispute commented for this story. However, a lawyer representing LuxUrban said it continues to operate its hotel at 960 Sixth Avenue, where room rates start at $270 per night.
The building itself dates back to 1930 and has had several uses over time—including fabric showrooms, serving as a bank headquarters, operating as a Marriott hotel before closing during the pandemic, and briefly functioning as a coworking space. The Monarch Rooftop bar remains open upstairs.
LuxUrban Hotels has faced other challenges recently: it received a $1.2 million fine from New York City for illegal Airbnb rentals; it has been delisted from Nasdaq; and it faces accusations of overstating its portfolio of hotels along with an ongoing shareholder class action lawsuit. Since opening earlier this year, reviews of The Herald have cited issues such as dirty conditions and poor service.
