NYC’s strong hotel pipeline pushes down occupancy, revenue: report

Development on track for 144K rooms by 2022, according to a report from NYC & Company

New York /
Dec.December 31, 2019 10:45 AM
Renderings of 450 11th Avenue and 350 West 39th Street (Credit: DSM Design Group and Gene Kaufman Architect)

Renderings of 450 11th Avenue and 350 West 39th Street (Credit: DSM Design Group and Gene Kaufman Architect)

UPDATED, Jan. 2, 2020, 9:05 a.m.: New York City’s booming hotel inventory includes 113 new developments set to open in the next few years, with just over half located outside Manhattan.

That’s according to the latest hotel development report from NYC & Company, the city’s official official marketing, tourism and partnership organization. The report projects that New York’s hotel inventory will reach 144,000 rooms by the end of 2021 — up 65-percent from the 87,000 rooms the city had in 2010, the New York Post reported.

Soaring tourism numbers have contributed to developers’ optimism, as 2019 saw a record of nearly 70 million tourists visit the Big Apple. But all of this new supply, as well as competition from Airbnb, has pushed occupancy down 1.3 percent, average room rates down 2.7 percent, and RevPAR down 4 percent year to date, according to November data from STR.

The city’s recent moves to restrict hotel development — above and beyond restrictions in manufacturing zones instituted in 2018 — may lead to another burst of activity to get projects in before the deadline.

Last week, The Real Deal used data from the same NYC & Company report for its ranking of Manhattan’s largest hotel projects. In that ranking, David Marx’s 450 11th Avenue and Sam Chang’s 140 West 28th Street tied for the No. 1 spot with 531 units each.

But New York already has a new No. 1. On Friday, Chang — who earlier this year claimed to be leaving the business to focus on pigeon racing — filed plans for his biggest hotel yet. The 34-story, 974-room development at 150 West 48th Street will be the ninth-largest in the city, and largest to be built in the past 35 years, according to CityRealty. [NYP] — Kevin Sun

Update: This story has been updated to clarify that the data regarding year-to-date changes in occupancy, room rates and RevPAR is from November.


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...