NYC’s hotel shortage offers opportunity to investors

TRD 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
181 Varick Street (Credit: Google Maps)

Claremont Companies buys Soho Marriott for $59M

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Brookfield Property Group CEO Brian Kingston and 652 11th Avenue (Credit: Google Maps)

Brookfield drops $83M on Hell’s Kitchen hotel

Mensur Cekic, Hudson Yards’ director of residences

From private tutors to meditation sessions, inside NYC’s new amenities battle

Lightstone Group CEO David Lichtenstein and Moxy Chelsea at 105 W 28th Street (Credit: Lightstone and Facebook)

Lightstone gave its neighbors $7M to build a hotel. Then the neighbors secretly went to war, suit claims.

arrow_forward_ios