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
Capstone Equities' Joshua Zamir and Renwick Hotel at 118 East 40th Street (TripAdvisor)
New owner Capstone revives Midtown’s Renwick Hotel
New owner Capstone revives Midtown’s Renwick Hotel
Jonathan Goldstein, CEO, Cain International and 356 West 58th Street (Cain International, Google Maps)
Midtown’s Hudson Hotel slated for mixed-use redevelopment
Midtown’s Hudson Hotel slated for mixed-use redevelopment
Strong month for US economy, but hospitality hiring slows
Jobs report shows more workers returning to office
Jobs report shows more workers returning to office
Hotel Trades Council's Rich Maroko and Mayor Eric Adams (Getty, iStock)
Hotel bill is union’s latest effort to boost market share
Hotel bill is union’s latest effort to boost market share
Times Square Sheraton Hotel and MCR CEO Tyler Morse (Google Maps, Getty)
Times Square Sheraton loss $33M worse than reported
Times Square Sheraton loss $33M worse than reported
Brian Chesky, co-founder and CEO, Airbnb (Getty Images, iStock)
Airbnb’s losses narrow as bookings hit all-time high
Airbnb’s losses narrow as bookings hit all-time high
Sonesta's John Murray along with the Benjamin Hotel (front left), the Shelburne Hotel & Suites (front right), the Fifty Hotel & Suites (back left) and the Garden Suites Hotel (back right) (Google Maps, Sonesta)
Midtown hotel portfolio sale suggests big value drop
Midtown hotel portfolio sale suggests big value drop
Stomp Capital founder Richard Fertig and 1655 County Road 39 in Southampton (Loopnet, Richard Fertig)
Southampton hotel trades for $14M ahead of revamp
Southampton hotel trades for $14M ahead of revamp
arrow_forward_ios

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

Loading...