Sternlicht sees housing recovery, but trouble for tourism industry: VIDEO

New York /
Jul.July 20, 2012 03:00 PM

The numbers say it, the headlines say it, and now Starwood Capital CEO Barry Sternlicht, the man building five hotels in New York City, says it, too: the housing recovery is real. But in an appearance yesterday on CNBC, the private equity mogul and former head of Starwood Hotels also voiced concern for the future of the United States travel industry (see video above).

“You can’t get a hotel room [in the city], but you also can’t get a visa to get into this country,” Sternlicht said. “People want to come here but we’re losing marketshare in travel and travel is a great business because the average American who doesn’t have the skillset to work at Yahoo! or Google can work in a hotel.”

Of course, Sternlicht is in the process of building a hotel on Brooklyn Bridge Park, a Baccarat Hotel at the old Donnell Library site in Midtown, and hotels at 1414 Sixth Avenue and 237 West 54th Street among others.

At least America will benefit from the jobs that come from the housing recovery, Sternlicht said. But he was careful not to credit politicians for the improvement. Sternlicht also said he, along with many investors, is trying to capitalize on demand for single-family rentals.

“With interest rates where they are the downside [of renting single-family homes] is modest. The upside is unknown,” he said. “You will get better-than-Treasury returns. What you will make ultimately will depend on how much confidence people have in the housing market.”

 

Related Articles

arrow_forward_ios
99 Washington Street (Google Maps, Getty)
Distressed FiDi Holiday Inn greenlit for migrant shelter
Distressed FiDi Holiday Inn greenlit for migrant shelter
From left: Värde Partners’ IIfryn Carstairs and Hawkins Way Capital’s Ross Walker along with 525 Lexington (Getty, Värde Partners, Hawkins Way Capital, Google Maps)
Hawkins Way, Värde buy defunct Marriott East Side hotel
Hawkins Way, Värde buy defunct Marriott East Side hotel
From left: Starwood Capital’s Barry Sternlicht and Veracity Development’s Edmond Li along with 111 Mercer Street (Getty, Google Maps, Veracity Development)
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Starwood's Barry Sternlicht
Starwood wheels and deals to fix $800M loan default
Starwood wheels and deals to fix $800M loan default
Atlas Hospitality Brokerage president Alan Reay (Atlas Hospitality Brokerage)
Listen: Inside the looming distress across the hotel market
Listen: Inside the looming distress across the hotel market
Bob Ghassemieh, Ignazio and Maggio Cipriani, Mr. C Seaport at 33 Peck Slip (Getty, Mr. C Residences, Google Maps, Bob Ghassemieh)
Mr. C Seaport hotel sold to South Korean operator for $60M
Mr. C Seaport hotel sold to South Korean operator for $60M
Hotel at Times Square heads to auction
Hotel at Times Square heads to auction
Hotel at Times Square heads to auction
From left: Quadrum Development's Oleg Pavlov, Toby Moskovits, and Heritage Equity Partners' Michael Lichtenstein with the  96 Wythe Ave (Williamsburg Hotel, Getty)
UK firm to buy Moskovits, Lichtenstein’s Williamsburg Hotel for $96M
UK firm to buy Moskovits, Lichtenstein’s Williamsburg Hotel for $96M
arrow_forward_ios

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

Loading...