T
he Archdiocese of New York will sell the parcel beneath the Lotte New York Palace hotel to the hotel’s owner for $490 million. The proceeds will help fund a settlement with survivors of church‑related sexual abuse. The announcement followed the archdiocese’s decision to negotiate a global settlement for roughly 1,300 victims, which will raise an additional $300 million to cover costs.

    The hotel, located at 455 Madison Ave., sits on one of the archdiocese’s most valuable pieces of real estate. A portion of the sale proceeds will go directly into the settlement fund, while the rest will be used to repay loans taken for earlier settlements. An additional $100 million is expected from the 2024 sale of the former archdiocesan headquarters at 1011 First Ave., a site slated for residential development.

    In a public letter, Cardinal Timothy Dolan apologized for the church’s past failures and the shame caused by the abuse. The archdiocese also plans to cut its operating budget by 10% and reduce staff numbers as part of its broader financial restructuring.