During the warmer months, the 35 New York City hotels with rooftop bars generate up to $120 in revenue per square foot for the space, according to a report released today by Jones Lang LaSalle extolling the virtues of rooftop bars.
The move toward rooftop bars has gained steam over the last decade, as 49 percent of the room count in hotels with rooftop bars were added since 2000. International chains have entered the market, too, now representing one-third of the total number of rooms with rooftop bars.
While the report notes there are several different subcategories of rooftop bars, including penthouses, bar and lounge rooftops and guest-only bars, all are profitable because high-margin liquor represents 60 to 80 percent of sales in these spaces. Some rooftop bars generate profits as high as 50 percent of revenue, with the average hovering around 30 percent. Year-round, including the winter months, the average revenue per square-foot is $65.
However, the report emphasizes that hotel developers must be careful to consider floor-area-ration and air right consequences — which can vary by location — before moving ahead with including a rooftop bar. – Adam Fusfeld
