Foreclosure and STK: Gansevoort South Speaks

The Haute Living blog has been buzzing about the Gansevoort South, as everyone is wondering when the highly anticipated STK restaurant will open, and what is going on with the news of a possible foreclosure. Now, the Gansevoort South breaks its silence.

With recent news that the Gansevoort South is heading to a foreclosure auction in late January, and persistent wonderment about the status of the highly anticipated STK restaurant set to open on premise, it’s really no surprise that a statement was released addressing these issues to calm the curious minds.

Opening just two years ago, the Gansevoort South, located in the heart of South Beach, has the reputation for being the party hotel, but it appears that in this day and age, that just isn’t enough, and the hotel has hit some financial rough patches. It’s reported that the problems may be primarily due to the condo unit component of the hotel, not the actual hotel itself, and the fact that revenue just simply is not enough to help them cover their construction debt. But anyone saddened by the news that one of the top party-hotels on the beach may be going somewhere, The Gansevoort Hotel Group is saying: not so fast. They are planning to try to buy back the hotel at the auction and if that happens, most guests probably won’t even notice anything ever happened behind the scenes.

So what about this infamous STK that is supposed to open? According to the statement, it is still expected to open “in the coming weeks.” You may have heard that before, but there’s something about the persistent reminders that it’s comning that actually makes us believe them. Here’s hoping.

The statement from the Gansevoort said, in part, the following: “Just named the “of-the-moment spot” in Miami by The New York Times on December 6, 2009, Gansevoort South has been the recipient of rave reviews since opening and, as a hotel, is financially profitable and capable of covering its respective debt. However, the 259 unit condominium component of the cross collateralized loan, due to an overall market collapse of condominium sales, has created a situation whereby the debt as currently structured is too great for the hotel alone to support it. For the foreseeable future, Gansevoort Hotel Group will retain management of the hotel; all staff will be retained and services will continue uninterrupted. All parties are looking forward to moving ahead and continuing to strengthen Gansevoort South’s position as a leader in the Miami Beach hotel market.”

President of Gansevoort Hotel Group, Michael Achenbaum added, “STK restaurant will open at the hotel in the coming weeks followed by an impressive New Year’s Eve celebration on the rooftop.”

Room rates over New Year’s Eve are current $720 a night for a deluxe king room.