Crains NY Business
by Lisa Fickenscher
March 12, 2010
Redesign of Times Square hotel was expected to be completed by October of 2011, but tight credit has set back the plan.
The “Lullabuy of Broadway” otherwise known as the Milford Plaza hotel may be taking a longer nap than it had planned.
The Times Square property on Eighth Avenue and 45th Street closed on Dec. 12, 2009 for a major renovation that was expected to be completed in October 2011. But last month, its owner, the Seymour Milstein family, decided to suspend its renovation plan indefinitely. A spokeswoman for the property attributed the decision to the economic climate.
“In light of the difficult credit market environment and current and projected conditions in the hospitality market,” the renovation is on hold, she said.
The family never secured financing for the renovation, she added. There is also no outstanding mortgage on the property. The family, which has owned the hotel for at least three decades, is considering many options, “nothing has been ruled out,” she said.
The 1,301-room property sorely needs a renovation. Travel blogs and Web sites are rife with negative comments from travelers who have stayed there and found the hotel shabby and lacking amenities.
TPG Architecture was hired to manage the renovation.
The side of the Milstein family that owns the hotelincludes siblings Connie and Philipdoes not have a stake in the floundering Emigrant Savings Bank, which is owned by the Howard Milstein side of the family.