13th November 2018
Rot in the Big Apple? Dark side of New York’s hotel industry
In the city that never sleeps, there has been tremendous growth in hotel supply of late with thousands of rooms added to the local market.
The TOPHOTELCONSTRUCTION database shows 7,120 rooms currently under construction with nearly 3,000 in the planning phase to be ready in the next couple of years.
However, despite average New York room occupancy rates at 85 percent, operators have faced pressure on room rates and experienced declines in revenues. Furthermore, beloved old stores, cafes and even homes are being redeveloped to make way for buildings that house short-stay guests who neither live nor work in New York.
There is increasing demand for hotel rooms in New York City. But with more hotel construction and development in the pipeline, what should investors, developers, operators and owners look out for?
Is there a risk of supply outstripping demand? What can be done to prevent another drop in room rates? Are hotels changing the face of the city too much?
We are very much looking forward to meet you at our next conference.