A deal between Airbnb and RXR Realty that was touted as a “21st-century hospitality model” will never see the light of day.
The short-term rental giant and the landlord are pulling the plug on a 10-floor residential rental conversion at 75 Rockefeller Plaza, according to Business Insider. The companies said last year that they would bring 200 hotel-style units to the 33-story office tower.
The coronavirus pandemic has battered demand for hotel rooms, making it difficult to justify new supply, RXR CEO Scott Rechler told the publication. “Airbnb and RXR mutually agreed that under the circumstances it didn’t make sense to proceed with the project,” he said.
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RXR, which has overhauled 75 Rock since it took control of the building in 2013, had positioned the building as a startup incubator.
Shared office-space provider Convene — which counts RXR and Brookfield among its backers — has 28,000 square feet in the building. The startup was also tapped to run “Club 75,” an invitation-only penthouse lounge at the top of the tower.
WeWork was set to manage 90,000 square feet of shared-office space at the property, but the Business Insider report did not provide an update on the status of that deal.
With falling revenues, hospitality firms have been cutting staff and seeking federal relief. [Business Insider] — Danielle Balbi