Aby Rosen is out at 11 Howard.
Rosen’s RFR Holding handed the luxury Soho hotel back to its landlord this week after a judge ordered the firm to surrender the property. Ennismore, the hospitality group backed by French hotel giant Accor, has taken over as operator.
The handover ends a bitter standoff over possession of the 211-key hotel between RFR and the landlord, German asset manager Commerz Real, that played out during a trial in New York City Civil Court last Spring.
RFR refused to vacate 11 Howard after Commerz claimed it owed tens of millions in unpaid rent. The landlord alleged RFR stopped paying rent on the property in March 2023 and ignored lease termination notices. Commerz filed a petition to evict RFR, claiming the firm owed more than $18 million in back rent, taxes, insurance and other costs.
RFR alleged in a separate complaint that Commerz violated its lease agreement by “shopping the property around” to potential buyers despite RFR’s contractual right of first offer to buy the building.
Despite the legal battle, Rosen had kind words for the new operator.
“11 Howard is a great hotel with an extraordinary future,” Rosen said in a statement. “We’re excited to see it enter its next chapter with an operator that we trust and have a long history with who will take the property to new heights.”
RFR bought the 114,500-square-foot, 14-story former Holiday Inn from Procaccianti Group in 2014 for $89.7 million and renovated it. The upscale 11 Howard hotel opened in 2016.
A week after opening, Commerz bought the hotel from RFR for $170 million. The deal included an agreement to lease the building back from the landlord for 10 years with options to extend for another 10 years and ultimately buy the building back. If RFR were to exercise its repurchase option, the Commerz investment would end up as a de facto loan.
But the arrangement soured, setting off a series of legal disputes. Commerz was seeking to collect the money, including $2.8 million in real estate taxes that it says Rosen and Fuchs jointly guaranteed. A separate trial to determine damages was settled for a confidential amount.
Commerz confirmed the operator change but declined to comment further.
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