Hotel room inventory skyrockets

New York /
Sep.September 21, 2011 11:25 AM

New York’s rapidly expanding inventory of hotel rooms is continuing to grow, the Post reported, making developers increasingly dependent on the tourist trade.

In the last decade, the number of hotel rooms in Manhattan has increased by more than 27 percent to 78,347 in 2011, from 61,464 in 2000, said Tom McConnell, head of Cushman & Wakefield’s hospitality group. And that growth shows no sign of letting up. About 3,000 new rooms are in construction in Manhattan alone, including Extell Development’s Hyatt on West 57th Street and the Hyatt Times Square at 135 West 45th Street, and plans for others are afoot, he said.

Investment sales hotel values rocketed to $500,000 this year, compared with a record high of $600,000 per room in 2006 and a low of $175,000 in 2003, the Post said.

The “sea change,” McConnell said, has been brought about by a diversification in locations for hotels. “For decades, we didn’t have any substantive supply south of 42nd Street at all,” he said. [Post]


Related Articles

arrow_forward_ios
One Manhattan Square Extell Development CEO Gary Barnett (Credit: Curbed NY)
Extell lands $690M refinancing package for One Manhattan Square
Extell lands $690M refinancing package for One Manhattan Square
NYC hotels hoping for holiday business swell likely to be disappointed
NYC hotels hoping for holiday business swell likely to be disappointed
NYC hotels hoping for holiday business swell likely to be disappointed
Clockwise from top left: 2875 Morningside Heights, 38-21 12th Street in Long Island City, 46 Nevins Street in Brooklyn (Google Maps)
Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
Extell to build UES building around 2 occupant holdouts
Extell to build UES building around 2 occupant holdouts
Extell to build UES building around 2 occupant holdouts
From left: Robert Mercer with 48-05 Metropolitan Avenue and Gary Barnett with 17 West 60th Street (Getty, Google Maps, Bulado General Contractors Corp)
$730M loan bundle funds slew of NYC projects
$730M loan bundle funds slew of NYC projects
Brookfield weighs $1.5B hotel portfolio sale
Brookfield weighs $1.5B hotel portfolio sale
Brookfield weighs $1.5B hotel portfolio sale
Ty Warner and the Four Seasons at 57 East 57th Street (Getty, Google Maps)
Midtown’s Four Seasons caught in tiff between owner and hotel brand
Midtown’s Four Seasons caught in tiff between owner and hotel brand
Mark Siffin of Maefield Development and 20 Times Square (Maefield)
Maefield’s Times Square Edition hitting auction block
Maefield’s Times Square Edition hitting auction block
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...