Quadrum Concludes $96M Acquisition of Williamsburg Hotel Following Favorable IP Dispute Resolution

After a multi-year intellectual property dispute, on May 7, 2025, Morrison Cohen client Quadrum Development Corp. secured ownership of the IP associated with Brooklyn’s Williamsburg Hotel. Quadrum originally acquired the hotel in 2023 for $96 million through a Section 363 sale under the Bankruptcy Code. The transaction was led by Partners Joseph T. Moldovan and David J. Kozlowski, who received national recognition from M&A Advisor and the Global M&A Network for their work.

Before the auction, Toby Moskovits, one of the Debtor’s principals, claimed that she owned key intellectual property tied to the hotel, including its name and the service mark “Sleep With A Local.” To address this unresolved claim, the court’s sale order was carefully crafted to include language ensuring that, if the IP dispute were resolved against Moskovits, all related rights would transfer to Quadrum as part of the sale.

Following the acquisition, and while the IP issue remained pending, Quadrum rebranded the hotel as the Arlo Williamsburg, integrating it into its Arlo lifestyle hotel brand.

Last week, Hon. Sean H. Lane of the U.S. Bankruptcy Court granted summary judgment in favor of the Chapter 11 Trustee appointed to oversee the administration and sale of the Williamsburg Hotel as part of the bankruptcy estate of 96 Wythe Acquisition LLC. The Court confirmed that the IP was “intertwined with the physical Hotel and the related business [and] the Marks passed with the sale of the Debtor’s business to Quadrum.”

Morrison Cohen represented Quadrum throughout the sale process and assisted with the related litigation led by the Chapter 11 Trustee Stephen S. Gray and his counsel at Cowan, Liebowitz & Latman, P.C. and Togut, Segal & Segal LLP.