Last June, the townhouse at 124 East 37th Street sold to an entity named CLAC America II, and two months later, the property was hit with a complaint claiming that the house was being used as an illegal hotel. As it turns out, the company that CLAC America leased the house to, Sky Worldwide, immediately turned around and started renting the units as hotel rooms. The website Revaluate tracks illegal hotels, and spotted old hotel room listings for the property. The page has been taken down, but a cached page shows they were asking up to $800 per night. Sky Worldwide also decided to makes some interior changes, which resulted in a Department of Buildings violation for work without a permit: "work noted: create opening between 2 & 3 floors to connect by stair & create triplex." The SWO and five other violations are still open, and there's more than $30,000 due in fines. CLAC recently won a lawsuit to stop the illegal use by Sky Worldwide and terminate its lease, but it looks like CLAC is over the whole thing, as they put the house on the market for $6.595 million.