Hotel market booms in NYC

July 12, 2010 03:00PM

The Ink48 lobby

Room occupancy rates continue to increase in New York City to 92 percent, a higher rate than any other city in the country,
Crain’s reported. The growth comes despite a surge of new hotel openings
over the past 18 months, which added 37 properties with 6,425 rooms to

the city’s inventory, according to Cushman & Wakefield Sonnenblick
Goldman. The demand, amid a continued economic slump, has come as a
surprise to industry watchdogs. “A year ago, we looked at New York City and thought all of

this new supply is coming in, and New York’s [economy] won’t recover
that quickly,” said Mike Depatie, CEO of Kimpton Hotels & Restaurants,
which recently opened two Manhattan hotels, Eventi
and Ink48. Now, nearly every major hotel
chain — including Kimpton, Starwood Hotels & Resorts and Hyatt Hotels and
Resorts — has plans to expand. Another 21 hotels are set
to debut in the city in the coming years, adding 4,300 rooms, according to Cushman.