The opening of the Hotel on Rivington in 2004 underscored the Lower East Side’s transformation from a hub of bargain-basement retailers to a domain of 24-hour party people.
Developed by neighborhood landlord Paul Stallings, the 20-story, 109-room hotel at 107 Rivington St. was the first of several glass towers to rise above the sea of tenements south of Houston Street. Soon after it opened, the 22-story Sixty LES Hotel rose up nearby on Allen Street, followed by the 17-story Bowery Hotel, the 20-story Ludlow Hotel, and the 16-story Blue Condominium, which was reportedly the first apartment building in the area with 24-hour doorman service.
Time hasn’t been kind to the pioneer, however. The Hotel on Rivington is struggling for guests and on Wednesday credit-rating agency KBRA estimated that investors in its $34 million mortgage will be stuck with an $11 million loss.
“The property is performing below historical levels,” KBRA said, noting that net cash flow has fallen in half over the past 12 months, to $1.2 million, and the occupancy rate is just 64%. The average occupancy rate for Manhattan hotels at the end of last year was 89%, according to PwC.
Stallings couldn’t be reached for comment. He also owns 11 apartment buildings in the Lower East Side and East Village holding more than 300 units, KBRA said.
Guests praise the Hotel on Rivington’s staff and views but say the place could use freshening up. “Rooms in desperate need of renovation (stuff not working, weird smells),” a guest wrote in January on TripAdvisor. A hotel staffer wrote back to apologize and said the issues would be addressed “as we continue to improve.”
