Even people just staying in Brooklyn for a few nights on vacation can’t escape the borough’s pricey real estate.
New research from the hotel and analytics firm STR has found that room rates in the borough have gone up by 4.1 percent year-over-year to $182.13, according to the Commercial Observer. Occupancy rates rose as well to 81.5 percent, while the number of hotels went up from 61 to 71.
In Manhattan, however, room rates went down by 1.6 percent year-over-year, falling to $269.45. They have gone down continually since hitting $292.46 in 2014.
Possible factors behind the price jump in Brooklyn include its evolution as a destination of its own, its proximity to Manhattan and its new product. Reasons behind the decline in Manhattan could include too much supply, a focus on hitting 95 percent occupancy rates and a room rate that is already sky high.
Room rates went up in Queens and the Bronx as well, rising by 5.1 percent and 4.7 percent, respectively.
“Brooklyn is super hot,” STR senior vice president Jan Freitag told the Commercial Observer. “Developers like it. Travelers like it. It has a great reputation, and it’s very close to Manhattan.” [CO] – Eddie Small