OYO's Lawyers Seek Exit After Contempt Over 25 Fired Hotel Workers

The law firm representing OYO Hotels in its Times Square fight with manager Highgate Hotels has asked to withdraw, days after the owner was held in contempt over the firing of more than 25 union employees, Crain’s reported Sept. 29. City records show the entity that owns the building at 157 West 47th Street paid $34,641,300 for it in 2019.

Why it matters

As Crain’s reported, the firm cites a breakdown in its relationship with OYO that it says cannot be repaired, and OYO says it will appeal the contempt finding. The contempt ruling followed an order not to fire Highgate or the hotel’s unionized staff. State Supreme Court Justice Andrea Masley said from the bench: “This is contempt if I ever saw it.” The workers, not the owner, are the ones whose jobs were on the line. We could not reach the court docket, so the filings here are the outlets’ account, not our reading of them.

The numbers

The deed, dated October 25, 2019 and recorded November 7, moved the 208-room building from 157 West 47th Street TS Hotel LLC to 157 West 47th Street Hotel Owner LP for $34,641,300, about $166,500 a room. City tax data lists that LP as the owner today. We could not confirm from the record alone that it is OYO’s vehicle, so that link rests on press reporting. The seller had bought the building in 2008 for $75,000,000, which makes the 2019 price roughly 54 percent lower. No mortgage has been recorded on the lot since the 2007 to 2008 financing.

What’s next

Watch for whether the court lets the firm out and who appears for OYO, and for the amount of Highgate’s legal fees the contempt finding puts on the owner. A new lawyer means a new appeal timeline. More on deals across the boroughs is on the New York market page.