LES hotel inventory to triple over the next few years

TRD New York /
Nov.November 14, 2012 02:00 PM

For years the Lower East Side has been changing from a low-income immigrant neighborhood into a chic playground for young professionals. But with 13 new hotels in the pipeline — tripling the number of hotel rooms in the neighborhood over the next few years —  those changes will be solidified, according to the Lo-Down.

In the next few days, four new hotels are scheduled to open, boosting the existing inventory by approximately 30 percent. Six other projects in various stages of construction – four of which are on a two-block strip along upper Orchard Street – will add another 900 rooms. And three other recent proposals — a 130-room boutique hotel in the landmarked Jarmulowsky Bank building on Canal Street, a 376 room hotel/condo combination building on Chrystie Street and a Broome Street project — are currently seeking regulatory approval.

“This is a sign that the world outside the neighborhood is interested in what the Lower East Side has to offer,” Jonathan Miller of Miller Samuel, said. “And the math works because hotel occupancy rates are at an all-time high.”

However, the hotel boom on the LES may just be a symptom of a larger trend, as the number of hotels expands across Manhattan. In 2011, New York City hosted more than 50 million visitors. To accommodate the city’s growing number of visitors, developers will have added more than 100,000 hotel rooms, with 40 percent of them being built since 2006, by the end of 2014, according to NYC and Company data cited by the Lo-Down.

“The absolute numbers that New York City is producing are unprecedented,” said Jan Freitag, a senior vice president with Smith Travel Research, which tracks hospitality trends and provides market data to hotel developers worldwide. “Manhattan is an outlier; everyone wants to be there. Manhattan is hot.” [Lo-Down]Christopher Cameron

 
 

Related Articles

arrow_forward_ios
Courtyard by Marriott in Herald Square and Marriott CEO Arne Sorenson (Google Maps, Getty)

Courtyard by Marriott in Herald Square to close permanently

Courtyard by Marriott in Herald Square to close permanently
From left: Embassy Suites at 60 West 37th Street, Ashford Hospitality Trust CEO Douglas Kessler, Magna Hospitality Group CEO Robert Indeglia and Royalton Hotel at 44 West 44th Street (Ashford, Magna Hospitality, Google Maps)

Royalton, Garment District hotels sell at discounts

Royalton, Garment District hotels sell at discounts
Hilton CEO Christopher Nassetta and the hotel at 234 West 42nd Street (Google Maps; Getty; Hotel Planner)

Hilton Times Square to close permanently

Hilton Times Square to close permanently
From left: Holiday Inn Express at Wall Street, Cindat CEO Greg Peng and Holiday Inn Express at Times Square (Credit: IHG/Booking and Cindat)

Cindat looks to sell stake in Manhattan hotel portfolio at discount

Cindat looks to sell stake in Manhattan hotel portfolio at discount
Thor Equities’ Joseph Sitt and Palmer House Hilton at 17 East Monroe Street (Google Maps)

Joe Sitt’s Thor faces massive foreclosure suit at trophy Chicago property

Joe Sitt’s Thor faces massive foreclosure suit at trophy Chicago property
Commercial real estate indices were down compared with this time last year, but buyers still aren’t selling — yet (iStock)

Report shows how much commercial real estate has fallen

Report shows how much commercial real estate has fallen
Foreclosures may be on the horizon for New York City’s hotel market, where there’s nearly $1.5 billion in unpaid CMBS debt. (iStock)

Nearly $1.5B in NYC hotel loans are unpaid

Nearly $1.5B in NYC hotel loans are unpaid
(iStock)

Half empty or half full? Hotel occupancy rate nears 50%

Half empty or half full? Hotel occupancy rate nears 50%
arrow_forward_ios

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

Loading...