Historically, New York City has not had enough hotel rooms to meet demand. More recently, however, a construction boom has resulted in additional rooms coming online at a furious pace that is expected to continue until the end of this decade. Driven by the low cost and availability of financing, and local government initiatives designed to spur growth in the city’s tourism industry that have eased the approval and permitting process, not to mention the perceived long-term investment stability for hotels, developers are adding hotel rooms all over Manhattan, as well as in areas not traditionally known as lodging destinations such as downtown Brooklyn. Despite this sharp increase in supply, occupancy rates remain strong and industry experts expect occupancy to continue to outpace supply until at least 2018.1 This dynamic also is in play in southern Florida and other “hot spots” across the country.2
One consequence of this market environment is that many investors and developers without significant hospitality industry experience are jumping into the hotel business for the first time. Naturally, these parties are looking to partner with an experienced, brand name hotel management company to help them navigate this complex industry and achieve success. When evaluating potential operator partners, developers rightly focus on choosing the appropriate brand for their hotel business, including the sales and marketing prowess that each potential partner can offer.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
