New Entity Files to Evict Roosevelt Island Hotel
A successor entity seeks to take over the shuttered 18-story Roosevelt Island hotel property.
Updated on Oct. 28, 2026 in Hospitality
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A new hotel entity has filed an eviction lawsuit against the shuttered Graduate hotel on Roosevelt Island. The group plans to assume control of the 224-room property and reopen it under a new name.
Why it matters
The legal action follows the hotel's operational failure to maintain a debt service reserve account and pay required legal fees. The venture aims to resolve these defaults after the property ceased operations in November 2025.
The 18-story hotel property features 224 rooms and was subject to a 65-year ground lease with Cornell. The Graduate brand, acquired by Hilton Hotels for $220 million in 2024, was also behind on $50,000 in utility payments.
The players
The Hotel at Roosevelt Island
This is the new entity seeking to take over the lease and reopen the hotel on the Cornell Tech campus.
Hilton Hotels
This global hospitality company acquired the Graduate branding from AJ Capital for $220 million in 2024.
HEI Hotels
This hospitality firm was assembled by the new hotel entity to manage the day-to-day operations of the venue.
New York City Economic Development Corporation
This city agency serves as the primary municipal body that approved the transition to the new hotel entity.
ACRES Capital
This financial firm served as the lender for the $76.5 million loan taken out by the former operator in 2022.
The details
The new entity, titled The Hotel at Roosevelt Island, secured approval from the New York City Economic Development Corporation to manage the site. The group has partnered with HEI Hotels to facilitate operations after the previous borrower failed to meet financial obligations.
Timeline
The Graduate signed a 65-year ground lease with Cornell in 2018.
The Roosevelt Island hotel location opened in 2021.
The Graduate took out a $76.5 million loan in 2022.
Hilton Hotels purchased the Graduate branding in 2024.
The Graduate hotel ceased operations in November 2025.
Market Landscape
The eviction effort highlights the complexities of long-term commercial ground leases on university-affiliated land. This move reflects a broader trend of hospitality firms navigating debt defaults to maintain operations in high-profile New York City districts.
Local residents and visitors should anticipate changes to hotel availability and potential rebranding efforts on the island. The transition aims to stabilize the site's operations, which have been stagnant since the property closed last year.
The takeaway
Commercial property disputes can lead to extended closures when operators fail to meet financial covenants. Stakeholders involved in hotel developments should ensure strict adherence to ground lease terms to avoid similar legal interventions.
Further reading
For more on the local sector, explore the Hospitality section.
Source note: This article includes information reported by The Real Deal New York.
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