7 Reasons why The NYC Hotel Industry is a Sizzling Hot Market

Without a doubt, the New York City hotel industry is a hot market. Recently, Colliers PKF Hospitality Research named the Big Apple as the best performing U.S. market. This study defines leading markets as ones with the greatest compound annual revenue-per-available-room growth rates from 2010 to 2014. Various reasons make New York City deserving of its top position.

Why is the NYC Hotel Industry a Hot Market?

1. For the past two years, New York City has been named as the top U.S. tourist destination.
2. Since the Big Apple is a global center, the city is a magnet for corporate travelers.
3. Generally, hotel development is a profitable venture. Within a thriving metropolis, there are even greater possibilities for profit.
4. High occupancy rates are driving the NYC hotel industry.

According to a March 2010 report by STR Global, New York had the highest occupancy rate (88.4%) of the top 25 U.S. markets. Just look at even one development group and you can get an idea of the popularity of NYC hotels. At present, Kimpton Hotel and Restaurant Group LLC own several luxury hotels in New York City. The Eventi in Chelsea, The Muse in Times Square, and 70 Park Avenue Hotel are included among their NYC properties. Yet recently, the company announced plans to build ten more hotels in New York City within the next ten years.

Michael Depatie, Kimpton CEO, explained their reasoning to Bloomberg BusinessWeek.
"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.”

Recent transactions give credence to Depatie's comments about the state of the NYC hotel industry. Business is booming in the Big Apple. From DiamondRock Hospitality Company's development at West 42nd Street in Times Square to the sale and planned renovation of the New York Helmsley, this city has a dynamic hotel industry.

5. New York City is a prime location for luxury real estate. The luxury market always rebounds quickly after an economic downturn.

6. The city's zoning department seems willing to accommodate large developments.

A few areas of New York City that will be seeing new hotel developments were zoned originally as industrial commercial areas. Hot spots like Chelsea and Tribeca have been rezoned to encourage development. On January 25, Choice Hotels International announced that one of the first two Cambria Suites in New York would open in Chelsea by 2013. (The other Cambria Suites will be located in Times Square). As well, Kimpton Hotels will be taking advantage of these blossoming markets.

7. New York City hotels are a smart investment.

Room costs have increased more in New York than anywhere else in the US. By March 2010, the revenue per available room had increased 19.1% from December 2009 to $178.60 a night on average. The rate rose another 8.2 per % in December 2010 – the largest U.S. increase.

At present, the average rate for a NYC hotel room is $276.07. One simple reason why the New York hotel industry is such a sizzling hot market - it makes for successful business.

NYC Hotels Hot Industry

ALIS: US hot spots

Hotel Acquisitions in New York City. NYC Hotels For Sale acquires assets in New York City .

We typically an all cash buyer, and purchases assets which are substantially discounted due to economic distress or repossession by financial institutions.

Domain acquires, develops and manages quality hospitality real estate investments in Manhattan and beyond.

NYC Hotels For Sale primary focus is hospitality, and is currently pursuing acquisitions through its subsidiaries.

NYC Hotels For Sale is pursuing acquisitions in the following sectors:

• Hotel Properties
• Hotel Portfolios
• Partially Developed Hotels
• Apartment Buildings in New York City
• Office Buildings: Class A Office Buildings
• Hospitality Approved Development Lots

A 90,000-square-foot Boutique Hotel on the Ninth Avenue side of Chelsea Market.

That's about 250 Hotel Rooms

More competition for the Standard, Maritime, Gansevoort and soon-to-open Dream Downtown

Read the rest in NY Curbed

Hotel experts have all sorts of definitions for boutique hotels. “Not cookie cutter,” one said. “Chic,” said another. “100 rooms or less,” said a third.

But whatever the definition, big hotel chains and smaller boutique brands are planning to open many more of them in cities across the United States and overseas over the next few years.

Here is a sampling of the boutique or, as some refer to them, lifestyle hotels that are in the works. In December, Ian Schrager, an originator of the boutique concept, announced two new brands, as yet unnamed. These follow the collaboration he began three years ago with Marriott International to create the Edition boutique hotel brand. In September, Richard Branson’s Virgin Group, which includes the high-end Virgin Limited Edition hotels, announced Virgin Hotels, a new four-star hotel brand that will focus initially on the North American market.

More recently, the Wyndham Hotel Group signed an agreement with Chatwal Hotels and Resorts to franchise and manage Chatwal’s Night and Dream boutique brands, and Sonesta International Hotels announced its own brand, Kept. There is Modo, from the former chief executive of Nylo Hotels; and new boutique spinoffs by Sofitel and Swire Hotels. And John Pritzker, a member of the family that started Hyatt Hotels, who now owns a controlling interest in Joie de Vivre, a California boutique brand, plans to double the brand’s 34 hotels and open them across the country.

Read More in The Article Source in nytimes.com

Buckingham Hotel to get Major Makeover

At the end of this month, the Buckingham Hotel, a venerable boutique property near Central Park, is closing for up to two years for a major renovation, according to the hotel’s manager.

Read More from The Source:

http://www.crainsnewyork.com/article/20110201/REAL_ESTATE/110209986?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+crainsnewyork%2Freal_estate+%28Everything+Real+Estate+-+CrainsNewYork.com%29

May 3 (Bloomberg) -- Cerberus Capital Management LP and Chatham Lodging Trust won a bankruptcy auction for 65 hotels owned by Innkeepers USA Trust with a bid of about $1.1 billion, according to two people familiar with the matter.

Cerberus and Chatham won the auction after a Lehman Brothers Holdings Inc. affiliate and Five Mile Capital Partners had agreed to lead off the bidding with a $970.7 million offer, said one of the people.

Read The Rest:: Bloomberg

Fitzpatrick Hotel Group Looking for More Properties. Hotels For Sale in New York City.

TOP Hotel Brokers of NYC OFFER OFF Market Hotels in New York City

John Fitzpatrick, president of the Fitzpatrick Hotel Group, is currently looking at three or four distressed properties, hoping to acquire an existing hotel and restructure it rather build something out of the ground.

The Manhattan-based company, which is celebrating its 20th year of doing business, owns and operates boutique hotels in Manhattan under the Fitzpatrick name.

We are always looking, and definitely we are looking at the moment, at three or four.

I’m more into buying existing hotels and trying to restructure than building something out of the ground.

Read more at New York Times and Crains New York

Fitzpatrick Hotel Group Looking for More Properties. Hotels For Sale in New York City.

TOP Hotel Brokers of NYC OFFER OFF Market Hotels in New York City

John Fitzpatrick, president of the Fitzpatrick Hotel Group, is currently looking at three or four distressed properties, hoping to acquire an existing hotel and restructure it rather build something out of the ground.

The Manhattan-based company, which is celebrating its 20th year of doing business, owns and operates boutique hotels in Manhattan under the Fitzpatrick name.

We are always looking, and definitely we are looking at the moment, at three or four.

I’m more into buying existing hotels and trying to restructure than building something out of the ground.

Read more at New York Times and Crains New York

Fitzpatrick Hotel Group Looking for More Properties. Hotels For Sale in New York City.

TOP Hotel Brokers of NYC OFFER OFF Market Hotels in New York City

John Fitzpatrick, president of the Fitzpatrick Hotel Group, is currently looking at three or four distressed properties, hoping to acquire an existing hotel and restructure it rather build something out of the ground.

The Manhattan-based company, which is celebrating its 20th year of doing business, owns and operates boutique hotels in Manhattan under the Fitzpatrick name.

We are always looking, and definitely we are looking at the moment, at three or four.

I’m more into buying existing hotels and trying to restructure than building something out of the ground.

Read more at New York Times and Crains New York

The Gehr Group Acquires Manhattan Hotel as Part of a $170 Million Portfolio Financing

NEW YORK--(BUSINESS WIRE)--The Gehr Group (www.gehr.com) announced today that Gehr Development, its real estate division which acquired the Fairfield Inn by Marriott Times Square in 2009, has completed the hotel acquisition of the adjacent Four Points by Sheraton Midtown Times Square for $112 million, or approximately $460,000 per key. The transaction was part of a $170 million portfolio financing secured by both hotels.

The Hotel transaction closed late yesterday with Tom McConnell, Jared Kelso and Ernest Lee of Cushman & Wakefield.

Sonnenblick Goldman's U.S. hospitality group representing Gehr in arranging a $170 million portfolio hotel financing secured by both hotels.

326 W 40th St, New York, NY 10018 http://www.starwoodhotels.com/fourpoints/property/overview/index.html?propertyID=1713

“New York is the best hotel market in the United States and we will continue to grow our portfolio in Manhattan”

"New York is the best hotel market in the United States and we will continue to grow our hotel portfolio in Manhattan," says Alfred Somekh, President of Gehr Development. “This latest addition to our real estate holdings is part of an ongoing strategy of acquiring high-quality hospitality assets in gateway U.S. cities," added David Lifschitz, President of The Gehr Group.

The Gehr Group Executives: David Lifschitz (left), Norbert Gehr (middle), Alfred Somekh (right) (Photo: Business Wire)

This latest acquisition brings Gehr Development's total rooms in Manhattan to 488. The company's New York portfolio also includes Sky Room Times Square, Manhattan's highest rooftop lounge. The Sky Room (www.skyroomnyc.com) is located on the 33rd and 34th floors of both hotels, offering stunning views of the Manhattan skyline.

The Gehr Group, founded by its Chairman & CEO Norbert Gehr, is a diversified holding company headquartered in Los Angeles, California.

Its principal business units are engaged in international trade, commercial real estate, manufacturing, wholesale and distribution.

In the past 25 years, Gehr Development has owned and operated over 1,000 residential units and over 1.2 million square feet of industrial, office, hospitality and retail space in California, New York and Florida.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6746242&lang=en

About Four Points by Sheraton
Four Points by Sheraton, with 130 properties in 22 countries, is offers the self-sufficient traveler a new kind of style and comfort combined with a spirited "can-do" service -- all at an honest value. Four Points by Sheraton hotels are located in easy-to-reach areas – close to major airports, suburban centers, urban hot spots and resort and vacation destinations. Four Points’ Simple PleasuresSM program celebrates the little things in life that make a big difference in guests’ travel such as a great beer, a free bottle of water, and a tasty treat at the end of a long day. It’s those little extras that score big points with Four Points by Sheraton customers.