The William Vale Hotel in Brooklyn was purchased this week, ending a bankruptcy battle. Stalking horse bidder EOS Hospitality, a New York-based, full-service hospitality company, closed on the luxury lifestyle hotel on June 18. The $177M transaction was approved by the U.S. Bankruptcy Court for the Southern District of New York on May 29. The stalking horse bidder makes the first bid on the sale of a distressed asset.
The transaction, which followed a three-year ownership restructuring and litigation process led by Asaf Ravid, chief restructuring officer of All Year Holdings, resulted in full payment of all outstanding secured bonds.
The hotel was the center of a messy dispute between the property’s developers Yoel Goldman and Zelig Weiss, according to the Real Deal. Things got messy when Goldman’s company, All Year Holdings, filed for bankruptcy in 2021. Restructuring officers took over and put the hotel’s controlling entity into bankruptcy in 2022. All Year was locked in a tense battle with Weiss, who tried on multiple occasions to wrest control of the hotel. Last year, Weiss, who was operating the hotel, announced he planned to end his fight last year and vacate his lease.
The judge’s ruling will effectively end the drama between All Year and Weiss. EOS will take control of the property and bring its own management company.
U.S. bankruptcy Judge Martin Glenn approved All Year’s settlement agreement with Zelig Weiss. As part of the settlement, All Year agreed to drop an adversary complaint against Weiss, which potentially left him on the hook for damages. Goldman and Weiss, however, will have to pay $8.5M to the All Year wind-down company. All Year’s wind-down company further agreed to purchase the internet domain for the William Vale hotel from Goldman and Weiss for $1.3 million.
The hotel marks EOS' first property it is managing in the New York City market.
"We are excited to expand the EOS portfolio through the acquisition of a premier urban resort campus in one of New York City's most dynamic neighborhoods, uniquely positioned for continued growth," EOS Investors VP Jenna Kronenfeld said in a statement.
EOS Hospitality appoints William van Wassenhove as the hotel's managing director.
"The award-winning William Vale is the preeminent luxury hotel in Williamsburg, Brooklyn. The hotel's boutique setting and destination amenities showcase what we do best at EOS Hospitality," EOS Hospitality CEO Simon Mais said. "We are fortunate to have a team comprised of leaders with extensive experience in the New York City hospitality market and are thrilled to provide best-in-class management for this stunning Brooklyn hotel."
Eastdil Secured and A&G marketed the hotel and served as exclusive advisors. Previously, Eastdil and A&G also marketed another luxury hotel in the neighborhood—the 147-room Williamsburg Hotel—which sold in 2023 for $96 million. Opened in 2017, the lifestyle hotel rebranded under Arlo Hotels and has reopened as Arlo Williamsburg.