NEW ORLEANS – The historic Jung Hotel on Canal Street transferred to creditors in Jan. after estate managers relinquished control according to a report by Nola.com.
Originally established in 1907, the hotel became an integral part of a thriving hospitality enterprise belonging to Joseph A. Jaeger, Jr., best known as one of the region’s most prolific entrepreneurs and real estate developers.
Jaeger is particularly remembered for using his ingenuity and philanthropic spirit to find ways to help other businesses. His use of tax credits to support the New Orleans Center for Creative Arts (NOCCA) to expand its campus is one example. After developing the campus extension, Jaeger transferred the development to the school.
The Jung Hotel’s history is one of both opulence and neglect, first opening its doors in late 1925 and becoming one of New Orleans’ premier accommodations. But it was mostly vacant from 1971 to 2012, particularly after Hurricane Katrina left the property in disrepair.
Jaeger purchased the building in 2012 and successfully revitalized it, undertaking an extensive restoration and investing approximately $140 million over three years. When completed, The Jung renovations included a long list of impressive modern amenities. It was then reopened in 2018 just before the onset of the COVID-19 pandemic.
Jaeger, whose portfolio at its peak included more than two dozen properties, was the largest independent hotelier in southeast Louisiana. But, as reported by Nola.com, even before his death in June 2024, Jaeger had begun selling some of his property holdings. His assets were gradually reduced to 15 properties.
With prolonged closures due to COVID, the Jaeger organization struggled to meet debt obligations to Chinese investors who had contributed around $60 million via the EB-5 program which grants permanent residence to foreign nationals if they invest $500,000 in qualifying projects. As debt arrears mounted, these investors could have forced foreclosure on the property but hadn’t done so at the time of Jaeger’s death.
However, the decision was made to relinquish ownership of the hotel, resulting in a significant financial loss for the Jaeger family estate.
Throughout his career, Jaeger supported many local civic entities, providing financing and mentorship to numerous small businesses in the region. Jaeger was also board chair of the Audubon Nature Institute and a member of the Delgado Foundation, Northshore Community Foundation, Northshore Business Council, Business Council of New Orleans, and many others.
The fate of the Jung Hotel underscores the challenges faced by historic properties in evolving urban landscapes, particularly in a city like New Orleans. Despite its celebrated restoration in 2018 and rich history, The Jung ownership transfer leaves many unanswered questions regarding the hotel’s future and that of the Canal Street legacy.
