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
The Watson Hotel at 440 West 57th Street (Google Maps)
Developers already eyeing commercial-to-resi conversions
Developers already eyeing commercial-to-resi conversions
Photo illustration of Brookfield Property Partners’ Brian Kingston (Brookfield, iStock)
Struggling hotel company handing Brookfield the keys
Struggling hotel company handing Brookfield the keys
Rendering of H Hotel, slated for 58 West 39th Street (Peter Poon Architects)
Heavy hangover: Air rights purchased for massive cantilever
Heavy hangover: Air rights purchased for massive cantilever
Watson Hotel at 440 West 57th Street (Google Maps)
Manhattan hotel trades in biggest distressed lodging deal of pandemic
Manhattan hotel trades in biggest distressed lodging deal of pandemic
Lightstone Group CEO Mitchell Hochberg and Marriott International CEO Anthony Capuano with a rendering of The Moxy Williamsburg (Getty, Lightstone, iStock)
Marriott, Lightstone Group bet on hotel recovery
Marriott, Lightstone Group bet on hotel recovery
(iStock/Illustration by Kevin Rebong for The Real Deal)
Travel roars back — and summer rentals book up
Travel roars back — and summer rentals book up
Bolivar Development's Peter Fine and 401 West 218 Street. (Google Maps)
10 biggest new project filings in NYC
10 biggest new project filings in NYC
Sonder CEO Francis Davidson. (Sonder, Google Maps)
Sonder to open in Flatiron Hotel next month
Sonder to open in Flatiron Hotel next month
arrow_forward_ios

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

Loading...