NYC’s hotel shortage offers opportunity to investors

New York /
Mar.March 30, 2012 09:30 AM

As the city’s residential recovery remains uneven and its office sector is mired in a slump, and investor’s best play is the city’s hotel industry, according to an investor newsletter sent by Seeking Alpha.

While the city currently has 133 square feet of office space per worker and one residential unit for every 2.02 persons, New York has just 90,000 rooms to service its 50 million annual tourists — which average out to 137,000 visitors per day.

Seeking Alpha said those figures clearly represent a supply problem.

However, because there’s no REIT that invests solely in the city’s hotels, it’s difficult for investors to capitalize on this shortage. Seeking Alpha points out that Hersha Hospitality Trust has the greatest exposure to New York City hotels among U.S. hospitality trusts, with 19.4 percent of its portfolio located in the city. Pebblebrook Hotel Trust, LaSalle Hotel Properties and DiamondRock Hospitality Company also have exposures of at least 11.65 percent. [Seeking Alpha]


Related Articles

arrow_forward_ios
 Jeff Sutton of Wharton Properties, 25 West 34th Street in NYC (Google Maps)
Jeff Sutton’s Midtown hotel project snags Sonder as first tenant
Jeff Sutton’s Midtown hotel project snags Sonder as first tenant
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
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
Shuttered Courtyard by Marriott LaGuardia up for sale
Shuttered Courtyard by Marriott LaGuardia up for sale
Shuttered Courtyard by Marriott LaGuardia up for sale
Oklahoma City developer reviving shuttered Martinique Hotel
Oklahoma City developer reviving shuttered Martinique Hotel
Oklahoma City developer reviving shuttered Martinique Hotel
arrow_forward_ios

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

Loading...