Big year seen for hotel openings, despite few visitors

Nearly 80 hotels with more than 13,000 rooms to debut

New York /
May.May 11, 2021 01:00 PM
Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)

Close to 80 hotels with more than 13,000 rooms plan to open in 2021. (iStock)

Tourists have yet to come back to New York City, but new hotels are projected to open en masse this year.

Close to 80 hotels with more than 13,000 rooms — the most in many years — plan to welcome their first guests in New York City in 2021, according to the data firm STR, the Wall Street Journal reported.

The pandemic has led to construction delays, forcing owners to push back their openings. But many hotel owners remain bullish on New York City.

Arlo Hotels is set to open a high-end 489-room property close to Hudson Yards in the spring. Other new hotels — including the 74-room Brooklyn Vybe Hotel and 33-room Baltic Hotel in Brooklyn and the 114-room ModernHaus SoHo — have already opened, according to the Journal.

The hotel openings can be seen as a sign of optimism for the city, but the de Blasio administration is looking to add a political hurdle to hotel development — a proposal his own staff has warned could cost the city $7 billion in revenue through 2035.

Occupancy is still terrible. In New York, despite many hotels taking rooms off the market by closing temporarily or permanently, occupancy was just 53.8 percent for the week ended May 1, below the national average of 57.1 percent. The city’s hotel occupancy was 89.8 percent for the same week in 2019.

The city’s hotel industry is facing serious headwinds as business travel and tourism have dropped precipitously. Fewer than 37 million people are expected to visit the city this year, down from 66.6 million in 2019.

Some hotels are choosing not to reopen because if occupancy were too low they would be unable to meet their operating costs.

[WSJ] — Keith Larsen





    Related Articles

    arrow_forward_ios
    (Image by Wolfgang & Hite via Dezeen)
    Hudson Yards megadevelopment inspires a new line of sex toys
    Hudson Yards megadevelopment inspires a new line of sex toys
    The Observation Deck at Hudson Yards (Credit: Adam Pogoff)
    Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
    Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
    Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)
    Facebook close to finalizing Hudson Yards office deal: report
    Facebook close to finalizing Hudson Yards office deal: report
    Mark Calabria and Sandra Thompson (Getty, FHFA)
    Biden ousts Fannie, Freddie overseer, leaving firms in gov’t hands
    Biden ousts Fannie, Freddie overseer, leaving firms in gov’t hands
    Nightingale’s Eli Schwartz and 111 Wall Street (Credit: Google Maps)
    Fee interest at 111 Wall Street sells for $220M
    Fee interest at 111 Wall Street sells for $220M
    One Court Square tower in Long Island City (Getty)
    Target is coming to Long Island City
    Target is coming to Long Island City
    From left: RGB chair David Reiss, tenant board member Leah Goodridge and RSA's Joe Strasburg
    Rent board grants six-month rent freeze, then 1.5% hike
    Rent board grants six-month rent freeze, then 1.5% hike
    Gary Barnett has another problem at UES site: a stabilized tenant
    Gary Barnett has another problem at UES site: a stabilized tenant
    Gary Barnett has another problem at UES site: a stabilized tenant
    arrow_forward_ios

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

    Loading...