With 48 million tourists visiting the city in 2010, New York City was the No. 1 tourist destination in America two years running. Hotel development is a lucrative business in spite of economic decline.
“Demand in that city is frankly insane,” said Depatie. “We’re focused on areas in Manhattan where you typically don’t have many hotels, like the Meatpacking District, Chelsea, or Tribeca.”
New York had the highest hotel occupancy rate among the top 25 U.S. markets as of March 2010, cited HotelNewsNow.com from a report by STR Global, a company that tracks supply and demand data for the hotel industry.
The occupancy rate was at 88.4 percent.The cost of a room for the night has increased more dramatically in New York than the rest of the country. In March 2010, the revenue per available room rose 19.1 percent from the end of 2009 to $178.60 a night on average.
The rate increased an additional 8.2 percent as of December 2010, the greatest increase in the nation. The average rate for a hotel room in New York City is now $276.07.