The William Vale Hotel in Brooklyn has finally got a new owner, ending a long, fierce bankruptcy battle. The iconic towering, luxury lifestyle hotel in Brooklyn’s Williamsburg neighborhood has sold for $177 million.
EOS Hospitality, the New York-based, full-service hospitality group, closed on the hotel on June 18. The company was the stalking horse bidder to acquire the hotel through bankruptcy court. Acting as a trump card for a distressed company, the stalking horse bidder makes the first bid on the sale of a distressed asset.
The transaction was approved by the U.S. Bankruptcy Court for the Southern District of New York on May 29.
The deal follows a three-year ownership restructuring and litigation process, led by Asaf Ravid, chief restructuring officer of All Year Holdings Ltd., resulting in the full payment of all outstanding secured bonds.
The hotel was caught in the midst of an acrimonious dispute between Yoel Goldman and his former partner Zelig Weiss. Weiss and Goldman jointly owned The William Vale and ground lease, according to a news report. Things started turning messy when Goldman’s former company, All Year Holdings, filed for bankruptcy in 2021. While Weiss tried to acquire the hotel, he didn’t close on a deal and also attempted to block a sale to another bidder, according to the report. In October 2023, Weiss exited the hotel’s lease, enabling All Year Holdings to sell the hotel.
The initial proceeds from the bid will be used to repay the hotel’s creditors, including the Israeli bondholders. Weiss is likely to receive some proceeds from the sale, after all the creditor are paid off, the report added.
The William Vale opened its doors in 2016. Sitting above Kent Park, the 21-story hotel offers unobstructed views of Manhattan. Featuring 183 rooms, the posh hotel also includes restaurants by restaurateur Andrew Carmellini, a rooftop bar, pool lounge,7,300 square feet of high-end indoor and outdoor function spaces and several storefronts and offices.
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.
