A Midtown hotel, The Herald, operated by LuxUrban Hotels, is facing eviction due to unpaid rent at 960 Sixth Avenue. According to court filings, the hotel has not paid rent since June of last year, with arrears reaching at least $1.6 million through December. This summer, a judge approved the landlord’s request for eviction.
LuxUrban is contesting the eviction order, arguing that it did not receive certain documents. Despite this challenge, missed payments have increased pressure on the property’s owners.
The building’s landlord—a partnership led by Victor Tawil and Ely Cohen—was sued last week by lender Aareal Capital. The lender claims that a $60 million mortgage on the 18-story building is in default after the owners failed to pay off the $55.2 million balance when the loan matured on August 15. This date marked the fourth extension of the loan deadline since its original due date in 2021. The complaint also alleges that July’s debt-service bill of $368,000 was missed and that required reserve accounts were not maintained.
None of those involved in the case provided comments regarding these developments. However, a lawyer representing LuxUrban stated that it continues to operate its hotel at the site where rooms start at $270 per night.
The building itself dates back to 1930 and has had several uses over time—including fabric showrooms, a bank headquarters, a Marriott hotel closed during the pandemic, and a coworking space. The Monarch Rooftop bar remains open upstairs.
LuxUrban Hotels faces additional challenges beyond this property dispute; it recently received a $1.2 million fine from New York City for illegal Airbnb rentals and was delisted from Nasdaq. The company is also accused of overstating its hotel portfolio and is currently subject to a shareholder class action lawsuit. Reviews for The Herald have cited dirty conditions and poor service since its opening earlier this year.
