1 00:00:00,300 --> 00:00:02,820 Sean Murray: Today on deBanked News, The Roosevelt Hotel in New 2 00:00:02,820 --> 00:00:06,420 York City is closing. Let's go over to Johny Fernandez, who is 3 00:00:06,420 --> 00:00:07,890 over there right now. 4 00:00:18,390 --> 00:00:20,550 Johny Fernandez: Hey, Sean, so right behind me is the Roosevelt 5 00:00:20,550 --> 00:00:24,600 Hotel. Now it survived the Great Depression, World War II, and it 6 00:00:24,600 --> 00:00:27,810 was also home to Broker Fair 2019 but at the end of the 7 00:00:27,810 --> 00:00:31,320 month, it will close its doors forever. A hotel spokesperson 8 00:00:31,320 --> 00:00:34,500 says this decision came after suffering pandemic related 9 00:00:34,500 --> 00:00:37,950 losses. They say the iconic hotel along with most of New 10 00:00:37,950 --> 00:00:41,790 York City has experienced very low demand and as a result, the 11 00:00:41,790 --> 00:00:45,090 hotel will cease operations. It says there are currently no 12 00:00:45,090 --> 00:00:48,390 plans for the building beyond the scheduled closing. The hotel 13 00:00:48,390 --> 00:00:51,270 will be added to the growing list of staple New York City 14 00:00:51,270 --> 00:00:54,300 businesses that have closed as a result of COVID. 15 00:00:54,630 --> 00:00:58,500 Speaker: It's so sad that this place is closing because it's a 16 00:00:58,500 --> 00:01:03,780 New York icon. This ------ this -------, a lot of movies were 17 00:01:03,780 --> 00:01:04,830 filmed in this place. 18 00:01:05,040 --> 00:01:08,730 Johny Fernandez: The Roosevelt opened its doors in 1924. It was 19 00:01:08,730 --> 00:01:12,720 named and built to honor the nation's 26th President Theodore 20 00:01:12,720 --> 00:01:16,560 Roosevelt. It was constructed during the prohibition and later 21 00:01:16,560 --> 00:01:19,710 became the modern trend of featuring designer store windows 22 00:01:19,740 --> 00:01:23,490 on the street from later on. The building was purchased by the 23 00:01:23,490 --> 00:01:26,910 limited investment branch of Pakistan International Airlines, 24 00:01:27,120 --> 00:01:32,010 or PIA in 1999. The hotel has appeared in a number of movies, 25 00:01:32,010 --> 00:01:35,280 including Maid in Manhattan, Malcolm X and The Irishman. 26 00:01:35,430 --> 00:01:38,790 Usually the hotel appears packed with guests and employees, but 27 00:01:38,790 --> 00:01:41,790 back in April, according to the Bureau of Labor Statistics, more 28 00:01:41,790 --> 00:01:45,270 than 7 million jobs were lost because of the shutdown and also 29 00:01:45,270 --> 00:01:48,990 because of travel restrictions. And as of September, here in New 30 00:01:48,990 --> 00:01:53,400 York City hotels fell below 40% capacity. According to the 31 00:01:53,400 --> 00:01:56,700 State's Department of Labor, there were roughly 500 people 32 00:01:56,700 --> 00:01:59,970 employed by the hotel when management issued furloughs back 33 00:01:59,970 --> 00:02:00,570 in March. 34 00:02:00,660 --> 00:02:02,880 Speaker: They've been really open through the whole pandemic 35 00:02:02,880 --> 00:02:06,690 but it had like minimum people working a couple of co-workers 36 00:02:06,690 --> 00:02:10,560 were here, I'm still trying to digest it, you know, because I 37 00:02:10,560 --> 00:02:13,920 know the pandemic is not the fault because the pandemic came 38 00:02:13,920 --> 00:02:18,120 and you know, disrupt everything but they just leave us hanging 39 00:02:18,120 --> 00:02:21,720 like in the air. I put my daughter through school, I put 40 00:02:21,720 --> 00:02:24,960 my son in dental school with this place. It was a blessing 41 00:02:24,960 --> 00:02:28,350 for me, you know, so it made me kind of sad now. 42 00:02:30,090 --> 00:02:31,770 Johny Fernandez: Like I mentioned earlier, the Roosevelt 43 00:02:31,800 --> 00:02:34,860 is near and dear to deBanked. This was actually the home to 44 00:02:34,860 --> 00:02:38,310 Broker Fair 2019 where Sean Murray spoke in the same 45 00:02:38,310 --> 00:02:41,700 ballroom where Michael Douglas delivered his famous "Greed is 46 00:02:41,700 --> 00:02:42,480 Good" speech 47 00:02:42,510 --> 00:02:45,150 Sean Murray: funding small business, clarifies, cuts 48 00:02:45,150 --> 00:02:49,590 through, and captures the essence of the evolutionary 49 00:02:49,590 --> 00:02:50,040 spirit. 50 00:02:50,100 --> 00:02:51,960 Johny Fernandez: Murry played off that speech by putting his 51 00:02:51,960 --> 00:02:55,470 own spin on it in front of a sold out crowd. He said funding 52 00:02:55,470 --> 00:02:58,710 a small business, for lack of a better phrase is good. But 53 00:02:58,710 --> 00:03:01,260 unfortunately, the Roosevelt did not receive the funding it 54 00:03:01,260 --> 00:03:04,920 needed. And it will close its doors forever. Reporting here in 55 00:03:04,920 --> 00:03:07,890 Manhattan. I'm Johny Fernandez with deBanked News. Sean, back 56 00:03:07,890 --> 00:03:08,430 over to you. 57 00:03:09,060 --> 00:03:11,760 Sean Murray: Thanks, Johny. It may not just be hotels we're 58 00:03:11,760 --> 00:03:13,980 losing here in New York, analysts were originally 59 00:03:13,980 --> 00:03:16,380 predicting that one out of every four restaurants in New York 60 00:03:16,500 --> 00:03:19,140 would go out of business as well. However, when we talked to 61 00:03:19,140 --> 00:03:22,140 Jared Weitz, the CEO of United capital Source, he thought the 62 00:03:22,140 --> 00:03:24,060 number was closer to two out of four. 63 00:03:24,060 --> 00:03:26,790 Jared Weitz: They actually estimate that one in every four 64 00:03:26,790 --> 00:03:29,550 restaurants is going to drop off, I'm saying it's going to be 65 00:03:29,550 --> 00:03:33,480 two. So I'm actually going higher based upon what you're 66 00:03:33,900 --> 00:03:37,860 just mentioning. And I would also just dovetail into saying 67 00:03:38,970 --> 00:03:42,570 landlords have given six to eight month reprieve to a lot of 68 00:03:42,570 --> 00:03:46,110 restaurants during this time, and that term is going to end 69 00:03:46,110 --> 00:03:49,950 soon. So you're going to go back to having to pay whatever rent 70 00:03:50,580 --> 00:03:54,690 while you're at 25 to 35% capacity and serving. And it's 71 00:03:54,690 --> 00:03:58,680 going to be a little more difficult for fine dining or, 72 00:03:58,710 --> 00:04:02,220 you know, catering halls or bigger, you know, places like 73 00:04:02,220 --> 00:04:07,050 that to have a larger staff or to have a higher rent. 74 00:04:07,350 --> 00:04:09,420 Sean Murray: The city council later passed a bill that gave 75 00:04:09,420 --> 00:04:12,420 restaurants the ability to charge an extra 10% to their 76 00:04:12,420 --> 00:04:15,960 customers for COVID relief. So they basically gave them 77 00:04:15,960 --> 00:04:18,720 permission to raise their prices, which presumably they 78 00:04:18,720 --> 00:04:21,630 already could have done. So we'll see if it has any effect. 79 00:04:21,900 --> 00:04:25,650 Sad news about The Roosevelt and until next time, I'm Sean Murray 80 00:04:25,680 --> 00:04:26,790 with deBanked News.