HSBC makes loan on GFI Capital's Beekman Hotel project

GFI Capital Resources Group, the developers behind the soon-to-be Beekman Hotel in Lower Manhattan, has received a $207-million loan from HSBC Bank, reports Commercial Observer.

GFI Capital is converting a vacant office building at 5 Beekman Street into a 287-room, 40-story hotel with a 68-unit condominium tower next door at 115 Nassau Street. The loan closed on May 8.

GFI Capital bought the main building for $64 million in March 2012 and the parcel next door for $22 million, city records show.

Virtual Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

The main building’s previous owners, the Chetrit Group and Bonjour Capital, which had acquired the property in 2008, also had plans to turn it into a hotel. However, due to the financial crisis, those plans were stalled.



Suggested Articles

In the short term, borrowers should continue to focus on expense management as revenues increase.

The reality will be that many hotels are simply carrying too much debt to survive based on the new reality of roomnight demand.

The additional, privately funded capacity already is being used to retroactively fund multiple development projects, including hotels.