Part 4/8:
Walter Bowen’s Block 216, which encompasses the Ritz Carlton hotel and residences, has seen troubling performance metrics. Ready Capital, the entity overseeing the project, now believes that assuming ownership of the distressed property may offer the best possible financial remedy. Reports indicate that occupancy rates are dismal, with only 23% of its office space leased and a strikingly low 8% of the 132 condominium units sold.
Ready Capital’s recent earnings report highlighted that the average revenue per room at the Ritz Carlton has dropped to $188, a steep decline when compared to the chain's national average of $343. Despite being a brand-new establishment, this rate presents an unsustainable figure for a luxury hotel that typically commands much higher prices.