Brooklyn hotel boom may exceed demand

City’s hotel count increased 21 percent in past five years

TRD New York /
Jul.July 22, 2015 06:00 PM

If you build a hotel in Brooklyn, will they come? A record number of hotel properties planned in Kings County are stirring concerns there may not be enough demand to fill them all.

At least 32 such properties are in the works from Williamsburg to Bushwick, with developers looking to capitalize on Brooklyn’s increasing viability as a trendy destination, according to Bloomberg News. But with supply also surging in Manhattan, some are worried Brooklyn hotel developments may face declining occupancy and depressed rates as projects open in the next few years.

The city’s hotel count has already increased 21 percent in the past five years, according to hotel industry research firm STR.

The average hotel occupancy rate in Brooklyn fell 1 percent in the first five months to 76.8 percent, while average room rates slipped almost 3 percent to $155.71 per night, according to STR. In Manhattan, occupancies dropped to 82.4 percent, down from 83.8 percent, while rates declined 3.3 percent to $255.60 per night.

“If you are a stand-alone, unaffiliated hotel, I am doubtful of your success,” Bruce Ford, a senior vice president at research firm Lodging Econometrics said. “It’s important to not confuse Brooklyn with Times Square.”

Developer Richard Born agreed that the emergence of dozens of hotels is “crazy” and “a bit scary,” but said he felt confident his 250-room Pod Hotel in Williamsburg would find success as an alternative to chains. [Bloomberg News]Rey Mashayekhi


Related Articles

arrow_forward_ios
The Hotel Indigo Lower East Side at 171 Ludlow Street and Rotem Rosen (Credit: Hotel Indigo)

Tallying crisis’ toll on MRR Development’s Hotel Indigo

Tallying crisis’ toll on MRR Development’s Hotel Indigo
Selina CEO Rafael Museri (Credit: The Vollman Group)

Selina CEO says $60M in funding will get startup through crisis

Selina CEO says $60M in funding will get startup through crisis
Rotem Rosen with the Hotel Indigo Lower East Side at 171 Ludlow Street, and Alex Sapir with the NoMo Soho hotel at 9 Crosby Street (Credit: Google Maps)

Sapir gets PPP loan for NYC hotel; Rotem Rosen to return his

Sapir gets PPP loan for NYC hotel; Rotem Rosen to return his
Clockwise from top left: John Tolbert, Philip Goldfarb, Dev Motwani, José Cil and Ken Stiles

Developers, resort owners push for Florida reopening plan

Developers, resort owners push for Florida reopening plan
Courtyard by Marriott Boston Downtown. Homewood Suites Chicago and Sheraton San Jose Hotel (Credit: Google Maps)

Hotel CMBS loans worth $2B fall into special servicing

Hotel CMBS loans worth $2B fall into special servicing
The Hotel Indigo Lower East Side at 171 Ludlow Street and Rotem Rosen (Credit: Google Maps)

Rotem Rosen lands SBA loan on Hotel Indigo to keep lights on

Rotem Rosen lands SBA loan on Hotel Indigo to keep lights on
Missed loan payments will approach Great Recession highs, a new report finds (Credit: iStock, Getty Images)

Missed loan payments to approach Great Recession levels: Fitch

Missed loan payments to approach Great Recession levels: Fitch
From top: the Mondrian Oriental, Soho House and Colony Club (Credit: Google Maps, iStock)

A stunning 7,300 Covid-related layoffs in two days reported to state

A stunning 7,300 Covid-related layoffs in two days reported to state
arrow_forward_ios

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

Loading...