The city’s hotel boom may not last much longer.
Despite roughly 6,000 new hotel rooms opening across New York City last year and another 6,000 set to come online in 2016, many are expecting the pipeline to dry up come next year.
“After the first quarter of 2017, we’ll see a precipitous drop in new hotel openings,” according to CBRE vice president and hotel specialist Bradley Burwell.
The city has added more than 30,000 hotel rooms over the past seven years, taking its total inventory to a record-high 102,000 rooms, the New York Post reports. That includes 53 new hotels between January 2014 and October 2015 that brought more than 9,000 rooms alone.
But “the market is definitely slowing down,” Lodging Advisors co-founder Sean Hennessey told the Post, noting how many of the hotel projects currently coming to fruition “were envisioned more than three years ago.”
Tourism in the city has surged in recent years, with the total number of visitors in the city climbing from 50 million in 2010 to 58 million last year, and forecasts for upwards of 62 million visitors in New York by 2020.
That has helped facilitate the hotel boom seen in the city in recent years – with outer boroughs like Brooklyn and Queens benefiting through unprecedented levels of hotel development. [NYP] – Rey Mashayekhi
Source: The Real Deal