City’s hotel boom set to tail off by 2017: report

Pipeline may dry up despite 6,000 new rooms set to open this year

New York /
Feb.February 02, 2016 04:38 PM

The city’s hotel boom may not last much longer.

Despite roughly 6,000 new hotel rooms opening across New York City last year and another 6,000 set to come online in 2016, many are expecting the pipeline to dry up come next year.

“After the first quarter of 2017, we’ll see a precipitous drop in new hotel openings,” according to CBRE vice president and hotel specialist Bradley Burwell.

The city has added more than 30,000 hotel rooms over the past seven years, taking its total inventory to a record-high 102,000 rooms, the New York Post reports. That includes 53 new hotels between January 2014 and October 2015 that brought more than 9,000 rooms alone.

But “the market is definitely slowing down,” Lodging Advisors co-founder Sean Hennessey told the Post, noting how many of the hotel projects currently coming to fruition “were envisioned more than three years ago.”

Tourism in the city has surged in recent years, with the total number of visitors in the city climbing from 50 million in 2010 to 58 million last year, and forecasts for upwards of 62 million visitors in New York by 2020.

That has helped facilitate the hotel boom seen in the city in recent years – with outer boroughs like Brooklyn and Queens benefiting through unprecedented levels of hotel development. [NYP]Rey Mashayekhi


Related Articles

arrow_forward_ios
Simon and David Reuben with 20 East 76th Street (Getty; Google Maps)

Reuben Brothers pick up Surrey Hotel at a discount

Reuben Brothers pick up Surrey Hotel at a discount
Hana Financial Investment’s Lee Jin-Kook and a rendering of 1 St. Marks Place (Hana Financial Investments)

Hana Financial to sell loans tied to Manhattan office, hotel properties

Hana Financial to sell loans tied to Manhattan office, hotel properties
Extell Development's Gary Barnett and 32 West 48th Street (Google Maps)

Extell makes its Diamond District hotel official

Extell makes its Diamond District hotel official
(iStock)

Ski resorts gear up for tough season in the shadow of pandemic

Ski resorts gear up for tough season in the shadow of pandemic
Union Square and Mayor Bill de Blasio (Getty)

City drops bid to require special permits for Union Square hotels

City drops bid to require special permits for Union Square hotels
Domio’s interim CEO Jim Mrha (Photos via Domio; iStock)

Domio not shutting down, plans “financial re-engineering”

Domio not shutting down, plans “financial re-engineering”
Domio's CEO Jay Roberts and Chief Strategy Officer Adrian Lam (Photos via Domio)

Short-term rental operator Domio shuts down

Short-term rental operator Domio shuts down
Hilton Times Square at 234 West 42nd Street and Roosevelt Hotel at 45 East 45th Street (Google Maps; Pixabay)

New York hotel owners on the hook for $500M severance

New York hotel owners on the hook for $500M severance
arrow_forward_ios

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

Loading...