The Real Deal New York

Brooklyn hotel boom takes shape

July 14, 2010 09:30AM

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Nu Hotel

Over the past few years, hoteliers have been landing in Brooklyn in unprecedented numbers, lured in large part by cheaper real estate, according to the New York Times. Contributing to the trend are budget hotels like the Sheraton Brooklyn, which opened in May, and the Best Western, which now has three locations, as well as boutique properties like Boerum Hill’s Nu Hotel and Williamsburg’s Hotel Le Jolie. Around 40 more hotels are in the pipeline for the borough, according to Smith Travel Research. But although land is less costly and easier to come by in Brooklyn than in Manhattan, it also comes with risk. Brooklyn rooms averaged $147 per night in May, compared to $255 in Manhattan and $205 in the city overall, according to STR, which up until now, did not release specific Brooklyn numbers because there weren’t enough hotels to draw from. The occupancy rate was 72 percent, versus 91 percent in Manhattan. Plus, the key business traveler guest contingent tends to prefer Manhattan. But there will always be travelers coming into town to visit friends and relatives, and they make up a large part of the Brooklyn lodging clientele. Javier Egipciaco of the Nu Hotel said nearly a third of his business comes by word of mouth within the community. [NYT]

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