Hotel Development New York City

NYC Hotels Boom Roars on Despite Vacancies, Declining Revenue - New York Post

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NYC Hotels Boom Roars on Despite Vacancies, Declining Revenue

Excerpt from New York Post

Just two years from now, the city will have 65 percent more hotel rooms than it did in 2010 - a mind-boggling jump from 87,000 to 144,000 rooms. The building boom goes on despite recent declining occupancy and revenue.

NYC & Company, the city’s official marketing organization, has compiled a list of all the new inns either in construction or soon to start. The growth reflects confidence in a tidal wave of visitors (business travelers and tourists) that hit a record of close to 70 million in 2019 — up from 48.8 million in 2010.

But so much new inventory as well as competition from Airbnb are taking a bite out of business. Overall city hotel occupancy through November 2019 was down 1.3 percent over the same period in 2018; average room rates were down 2.7 percent; and RevPAR — or revenue per available room — was off 4 percent, according to industry tracker STR.

Most of the new projects were set in motion before the recent modest dips in business. Others still in the planning stage are likely to be rushed to beat new restrictions by the City Council on hotel development that would require most projects to undergo review by the Council. The measure, backed by the powerful Hotel Trades Council union, is likely to be approved by Mayor Bill de Blasio.

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