25 Reasons behind Recovery of U.S. Hotels

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Countless articles and reports talk about a recovery in the U.S. hotel market especially in major centers like New York City. Yet first-time hotel buyers or inexperienced investors must get overwhelmed with all the facts and figures thrown at them. More than one first-timer must wonder if this talk of recovery is just hype put out by realtors and hoteliers.

Is the American hotel industry in recovery mode? The truthful answer is – yes – and various reasons support the reality of a recovery in the hospitality industry in New York City and other U.S. cities

Reasons behind Recovery in U.S. Hotels

1. Major markets in the US had a profitable year in 2010.

2. Last year, New York City saw 48.7 million visitors - 6.8% more than 2009.

3. Generally, there is a rise in demand for hotel rooms in the US.

4. International tourism has moved into the recovery period.

5. Greater demand for rooms and increased tourism support the hotel industry as it regains strength.

6. During August 2010, PricewaterhouseCoopers projected strong growth for the lodging industry in 2011.

7. The PricewaterhouseCoopers prediction was based on a forecast from Macroeconomic Advisers projecting a revival in 2011.

8. Significant players in the hotel industry (Marriott International, Starwood Hotels & Resorts Worldwide,…) are showing strength.

9. Industry growth is being influenced by a rising global demand.

10. Improvement is evident in the key performance metrics including occupancy, average daily rate, and revenue per available room.

11. U.S. hotels ended 2010 with a successful final quarter.

12. U.S. hotels have been able to keep up that pace in the New Year.

13. STR, an industry group, reports that U.S. hotels showed improvement in all metrics for the week ending January 29, 2011.

14. The average selling price per room rose 86% from 2009 and is expected to increase further in 2011.

15. During the current year, occupancy is expected to climb by 1.8 per cent.

16. The average daily rate (ADR) is projected to increase by 4.2 per cent.

17. Revenue per available room (RevPAR) is expected to rise by 6.1 per cent.

18. According to NCREIF and Smith Travel Research, the monthly demand for U.S. hotel rooms has increased by 9 per cent.

19. The increased activity in Wall Street has led to mergers and acquisitions in the hotel market.

20. At least 1,289 hotels were sold or transferred in 2010.

21. Large public companies invest in NYC hotels. Smart investments will have a positive effect on the performance of company shares.

22. The hospitality industry is a strong sector even when emerging from an economic downturn.

23. Historically, the hotel market is a profitable investment.

24. The hotel market provides opportunities for sound long-term investments. Large public companies are investing in NYC hotels.

25. ETC advises to "take encouragement from the broad range of positive signals." The recovery predictions have been confirmed by the U.S. Department of Labor Office of Research and the European Travel Commission.

A Quiet Resurgence of the American Hotel Industry

Affordable Deals in NYC Hotels

New York City attracts a multitude of tourists on an annual basis. The city, as well as the hospitality industry, does an effective job of marketing the metropolis and its guest rooms. With a perfect location, popular brands, and prominent owners working in its favor, the NYC hotel sector is a thriving concern.

In fact, everyone can take advantage of this exciting hospitality scene. Whatever their budget, no tourist needs to cross the Big Apple off their list. Travel packages and affordable hotel prices are available for this global center.

Tips for Terrific Travel and Hotel Deals

Book early to find fabulous and affordable accommodations in New York City.
Make reservations now for spring breaks.
If you are still undecided, at least book early in the New Year (preferably January) for that April trip.
Comfortable lodging properties can be found everywhere in New York City.
Keep checking for the best hotel deals.
If you need to change your plans, many NYC hotels will allow cancelations without penalty.
Travelers can always rebook if they discover a fallen price.
Several hotels offer discounts for non-refundable bookings.
Priceline and Hotwire offer discounts but do not release the hotel name until after a non-refundable booking.
BetterBidding.com has excellent advice for first-timers. This site shows recently accepted bids.
Take advantage of travel packages.
Almost all U.S. carriers offer cheaper flight prices for earlier bookings.
Specific airlines might offer only one class of seat but very inexpensive rates for early bookings.
Major airlines let passengers cancel and rebook tickets purchased online within 24 hours without penalty.
Plan flights before or after peak days and pay cheaper rates.
Fly on a holiday. Actually, Thanksgiving or Christmas morning or early New Year's Day are slow traffic times.
Flying non-stop costs more than a trip with at least one touchdown.
Allow plenty of time for connecting flights.
Choose the cheapest flight for both ways – even if that means picking two different airlines.
Do a through check of online prices. Different travel websites might have better deals.
Hotel and rental car companies can offer deals for certain groups or employees.
It is possible to get a NYC air/hotel package sale for 4 nights at 3-5 star Manhattan hotels for $675.*
*Between now and the end of 2011 depending on specific hotels and departure locations
Visitors to New York City can arrive via LaGuardia, JFK, or Newark Airports.
Several popular airlines fly into airports serving the Big Apple.
The NYC hospitality industry offers all kinds of incentives – from free breakfasts to 10% discounts to free room upgrades.
New York City hotels offer value for money complete with superb surroundings and helpful staff.

NYC Hotels

Check out Hotel 99 - the newest budget boutique 'extended stay' hotel in New York's Upper West Side. This Broadway hotel offers comfortable accommodations at discount rates. Hotel 99 is situated near well-known NYC sites such as Central Park, Lincoln Center, and the Metropolitan Opera.

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Amex...Accor...And More In New York City

Amex

Michael Steinhardt and his investment partner, Allan Fried, have purchased two former American Stock Exchange buildings for $65 million. The deal closed in mid-February. The investors paid cash for the properties – although Fried said that they might look for financing in the future.

Construction is expected to start within a year. The project will be completed two years after the start. The investor pair did not divulge the expected cost of construction.

The former American Stock Exchange building at 86 Trinity Place was part of the deal. This building has been vacant most of the time since the exchange merged with the New York Stock Exchange in 2008. Steinhart is pleased about the purchase of this historic structure.

"We're thrilled about this acquisition of such a historic building, which demonstrates our belief in the future of downtown and the growth of New York City," said Michael Steinhart, investor.

As well, an adjacent 10-storey building at 22 Thames Street (used for back office work) was acquired in the deal. The investors plan to tear down this building and construct a 60-story residential tower (maybe, luxury rentals). The new owners have the right to build 400,000 square feet of residential property.

Located just a block south of the World Trade Center in the Financial District, the buildings are in an area that was affected by the recent economic turmoil. Yet the neighborhood is showing signs of recovery.

Except for during the recent downturn in the economy, the Financial District has been a thriving area since the mid-1990s. For more than a decade, the city has offered tax incentives to developers who converted unused office space into apartment buildings. Until recent poor economic times, the city's initiative was working – even after the expiry of the tax credits.

The downturn, however, disrupted projects but lenders and developers want to get the activity back on track. Transactions are on the move. William Beaver House has new owners and developer Ziel Feldman bought a defaulted loan from the Setai Wall Street condominium and spa from Anglo Irish Bank Corp. Obviously, Steinhardt and his partner have faith in the future of the area.

The pair has a retail complex, hotel, and residential tower planned for the site. The Trinity Place building will be converted into a retail complex with several shops and one high-end anchor tenant. A 174-room boutique hotel is planned for above the retail. Steinhardt thinks that this building will make an exceptional hotel with its 60-foot ceilings and 15-storey tower.

Accor

French hotel owner and operator Accor SA has put its 480-room Hotel Novotel at 226 West 52nd on the market. The French owners have commissioned Jones Lang LaSalle to sell the property. Accor is selling real estate assets and shifting its focus to management and branding, Therefore, Novotel's buyer will be required to keep Accor as the hotel's manager.

Holiday Inn Express

Walnut Hill Group, a California-based real estate investment group, has purchased its first NYC property - the Holiday Inn Express at 15 West 45th Street for $43.87 million. Magna Hospitality Group was the seller. Magna, a Rhode Island-based hotel investment company, bought the Midtown property from the McSam Hotel Group in 2005 for $36.5 million. The property was the city's first Holiday Inn Express and the first major NYC deal for Magna. At present, Magna has several properties in New York City.

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Boutique Hotels - The Concept of Buying

Numerous investors pursue boutique hotels – especially in major centers like New York City. Investors understand that the concept of buying into a NYC hotel is on the mind of shrewd entrepreneurs everywhere. Actually, hotel owners under major brands are also examining the 'concept of buying' as it applies to their guests.

Hotel Shop

The 'hotel shop' is becoming a place where establishments can express their uniqueness. Bjorn Hanson, divisional dean of the Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management at New York University, says that hotels can express individuality through their shops. Hotel owners prefer unique merchandise.

During the previous decade, the hospitality industry had tried the same plan to promote their restaurants. Originally, the shops in hotel lobbies were designed to address practical needs. The outlets offered sundries, candy bars, and souvenirs. The hotel shop was an uninspiring fixture in lodging properties.

Concept of Buying

Yet today's hotel owners are rethinking the shopping services provided for their guests. Every hotel wants to distinguish themselves from the rest of the hospitality sector down the street or across town. Hotel owners are upgrading their shops and expanding their merchandise to include items found in gift shops, fashion outlets, emporiums, and even art galleries.

Hotel Brands

Hotel brands (including several properties operated by the Morgan Hotel Group) are rethinking the concept of the shop itself. Hotels hope to attract leisure and corporate guests as well as local residents to their stores. Indeed, large chains (such as Marriott and Westin in which the average stay is five days) have successful shops focusing on quality clothing and local products.

Hotel Markets

Individual hotels in a variety of markets are adopting their own initiatives. In fact, small boutique chains and high-end independent properties have already been embracing innovation. Although hotels still stock standard items (such as bathrobes and sheets), many brands have developed additional customized goods.

W Hotels

W Hotels in certain cities around the world offer cocktail dresses, earrings, and bracelets in their own hotel brand. W clothing collections were first introduced a couple of years ago at New York Fashion Week. W Hotels has stores in 18 of its 41 properties on the global scene. This chain is credited with originating the idea of the high-concept hotel shop.

In 2002, the W New York shop started the trend by offering high quality clothing, amazing accessories, and superb candles in the store instead of standard choices. Eva Ziegler, W Hotel’s global brand leader, says that the main goal of the collections is to provide the ultimate experience for guests. Profit is not the prime concern but Ziegler adds that the stores enjoy financial success.

Hospitality and Retail

Hotels are beginning to realize that the retail and hospitality industries can work together - although each sector has its own requirements. Properties can form partnerships with retailers or lease space to outlets. Local retailers welcome the chance to open a version of their main stores within a hotel shop. Since occupancy rates are expected to increase, hospitality insiders predict a bright future for upscale hotel shops.

High-end outlets add to a hotel's appeal. Chekitan Dev, an associate professor of strategic marketing and brand management at the School of Hotel Administration at Cornell University, has nothing but positive things to say about attractive and efficient hotel shops that meet guests' needs. Successful hotel shops mean that satisfied customers will spend more time and money within the property.

If hotel owners find a perfect balance and popular vendor, they will improve the general experience for guests and add to their own profits. Owners must choose which type of venture (shop, restaurant, or bar) makes more financial sense. Depending on the specific hotel and its location, owners can charge vendors anywhere between $50 and $1000 per square foot. Properties might also be able to share in the sales revenue.

Generally, sales in hotel stores are spontaneous purchases. The best selling items fall in the price range of $10-$50. Guests buy everything from toothbrushes and candy to customized clothing. Although major items are available in hotel stores (such as the $1,000,000 apartment at the Mondrian South Beach vending machine), guest prefer smaller products that fit into carry-on bags.

Morgans Hotel Group

A spokesperson for the Morgans Hotel Group says that their chain likes to vary the products at their stores in different cities. As well, like most hotels, the Morgans Group gears its inventory to reflect the location and its clientele.

New York's Standard Hotel

New York's Standard Hotel invites artists to create installations for sale in the establishment's shop. In addition, the hotel offered limited-edition prints and posters for purchase as well as playing cards based on the artists' work. Of course, the Standard Hotel does not forget the staples of hotel shops such as magazines, jewelery, and fragrances.

Mondrian Soho

The Mondrian Soho in New York has introduced an exciting project to create shopping outlets in minimal space. Hotel guests can use an in-room iPad and buy items (Rogan sweaters and shirts,…) from the mini-bar. Purchases are ready within ten minutes.

Hospitality Boutiques

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Crosby Street Hotel - Chic Style in New York City

There is no shortage of superb hotels in New York City. Whatever neighborhood you visit, you will find chic, contemporary, and luxurious establishments. Boutique hotels fall into two categories because this type can be either a luxury hotel or a more affordable choice.


Image courtesy of firmdale.com

Actually, the owners of boutique hotels place tremendous emphasis on personalized service. The original concept of boutique hotels revolved around smaller places that were not part of a hotel chain. Of course in the modern hotel industry, multi-national companies might have their own boutique Hotel brands. The emphasis, however, remains on customized services for guests. Roam through New York City, through SoHo and Chelsea or elsewhere, and discover chic boutique hotels.

Opened in October 2009, the 11-storey, 86-room Crosby Street Hotel in SoHo takes class and style to a whole new level. This upscale 85,000 square-foot hotel is the London-based Kemp Firmdale's first venture into the NYC hotel market. The company added an extra touch of elegance to the New York City hotel scene with this boutique hotel. In 2006, LXR Luxury Resorts & Hotels had opened London NYC – another Big Apple hotel hoping to enhance the guest experience. No doubt, London NYC made an impression with David Collins interiors and the Gordon Ramsay restaurant.

The diverse design of the guest rooms mean that they can be cozy, comfortable, and trendy at the same time. Delicate details and contemporary colors, as well as striped and floral wallpaper, come together in a glorious mix. The interior design features stylish and playful elements combining in perfect harmony.

Smart and spacious guest rooms focus on comfort rather than the minimalist look seen in other modern hotels. Inviting sofas and arm chairs, soft carpets, and expansive bathrooms are in style at this luxurious hotel. Decor schemes can vary from chintzy to kitsch to streamlined but the designs always impart a warm and welcoming style.

Although right next to the specialty shops of Prince and Spring Streets, Crosby Street is a quiet, cobbled street but the area has an industrial past. With its building façade resembling that of a downtown factory, the Crosby Street Hotel is at home in the area. Coincidentally, the hotel is on the site of a car park – just like Firmdale's Soho Hotel in London.

The hotel is bordered by Houston Street and Broadway. For shopping enthusiasts, international brands, department stores, and charming boutiques are at their doorstep. For those who enjoy fine dining or the excitement of the city's night life, SoHo has something to suit every taste.

Fashion lovers flock to Barney's Co-op on Wooster Street. The Dean and Deluca is a gourmet's delight. Trendy bars and restaurants fill the area including the bistro, Balthazar, on Spring Street and the cocktail bar, Pravda, on Lafayette.

Last week, the Mondrian SoHo entered the mix of neighborhood hotels. Yet there is room for both hotels (and more) to thrive in the creative atmosphere of Soho. Check out more details about the Crosby Street Hotel.

Determined Developer Building NYC Hotel

No doubt, every developer interested in the NYC hotel market has a degree of determination. Yet sometimes one person stands out for remaining steadfast under difficult circumstances. When a developer is facing foreclosure on a multi-million dollar property and still wants to demolish one NYC building and raise another hotel, he might be worthy of a determination award. Of course, that depends on whether he is serious about the whole venture.

New Hotel in New York City

Joseph Moinian, much-talked-about developer, faces a $93 million foreclosure for a mortgage at 100 John St. As well, Moinian has just avoided losing 3 Columbus Circle to the banks. Yet he has filed plans with the Building Department to demolish a 5-storey Midtown structure at 237 W. 54th St. between Broadway and Eighth Avenue and build a new 34-storey hotel. The DOB has approved the application to demolish the building.

As of March 1, however, no building permit was in evidence at the site of the soon-to-be demolished building. Scaffolding could be seen around the building, and a sidewalk shed was in plain view. Most likely, a demolition will soon be underway – although a spokesperson for Moinian denied the story. The rep claimed it was just a cleanup of the vacant building and the activity did not require a permit.

The new hotel is being designed by Manhattan architect Gene Kaufman. DOB has not yet approved Kaufman's plan for the building. Moinian's reps, however, did not divulge specific details about the project. A Moinian spokesperson noted that the plan is in preliminary stages.

Yet information is out there about the new hotel. Apparently, the building will have 80 feet of sidewalk frontage and 171,129 square feet of floor area. A restaurant will grace the ground floor. Accommodations include 14 hotel rooms each on floors 2-19, nine rooms on the 20th floor, and 10 rooms each on floors 21-34.

Planned Development

What is the exact plan? There is no denying that Moinian always has something in mind. Last year, Moinian had tapped Marcus & Millichap to find an equity partner for a joint venture at the site. Marcus is not involved in the current project.

Do these actions demonstrate determination and an abiding faith in NYC hotels? Maybe they do or perhaps Moinian could have other reasons to go in this direction. Nevertheless, this developer is not being foolish to put his faith in the NYC hotel market. Currently, buying and selling transactions are brisk in the city's hotels. Several hotels are changing hands.

As an experienced developer, maybe Moinian recognizes that this recovery period is a prime time to build a hotel in the Big Apple. When the economy returns to its peak, everyone will want a slice of the pie. In addition, the prices will move upward in sync with continued improvement in the economy.

NYC Hotel Investment

While many people might ponder Moinian's moves (considering the foreclosure issue and near miss at 3 Columbus Circle), his plans to build make sense from a developer's point of view. Whether the actions are the right move for Moinian might be debatable but, generally, investing in NYC hotels is a smart investment.

Moinian living on the edge

Determined Investors Choose Distressed Hotels

Are you wondering whether now is the right time to invest in distressed hotels? Many investors are thinking along these lines. The U.S. economy is in recovery and the hotel industry has come out of the recession phase. Since prices might rise in the near future and discounted prices could be a thing of the past, investors are determined to make the most of the present hotel market - especially in major centers like New York City.

Hotel Sales – Past and Present

During 2007, hotel sales priced at $5 million (and above) reached $80 billion. By 2009, sales of hotel properties had dropped to $2.5 billion. In 2010, hotel sales brought in $13.2 billion. During the first quarter of 2011, hotel sales came to $3.4 billion year-to-date through March.

Despite the economic recovery, however, buyers can choose from a wide selection of distressed properties. In fact, several distressed hotels have not showed up yet in the market. The signs are encouraging for investors in hotels especially NYC properties.

Capital markets are showing recovery. As well, an improvement is evident in hotel operating fundamentals. More Hospitality sale transactions and an increase in construction activity are positive signals.

Cautious Hotel Investors

Of course, several investors are proceeding with caution. Potential hotel buyers are uncertain about government policies including taxes and the budget. If there is not a plentiful supply of distressed properties, sellers can expect higher prices.

Investors do not want to make mistakes; they remember the reality and effects of earlier recession periods. Generally, lenders adopt an indecisive strategy.

Wall of Debt

The "wall of debt" exerts a huge influence in this situation. Several investors will wait for various loans to mature in the coming years. They think that owners will be unable to finance and, therefore, could decide to sell at discount prices.

Obviously, owners do not want to be burdened with huge losses. Actually, many owners expect to refinance or wait and sell at a higher price. They are pinning their hopes on a continuing economic recovery and improvement in fundamentals. Owners aim for higher values.

“Bad boy” guarantees (owners are held liable for a loan if a company files for bankruptcy) have resulted in fewer bankruptcies – and a decline in the number of distressed properties. Although varied trends might discourage investment, previously granted loan extensions will expire at a certain point. Lenders will have to work out the loans.

Distressed Hotel Properties

In that instance, owners will be forced to sell properties or return keys to lenders. Often owners realize that stabilization is expensive and risky while a sale might be the better option. Since lenders prefer not to be in the real estate game, more distressed properties should be entering the marketplace.

Buyers who invest in distressed properties must practice "due diligence." Investors examine purchases from every angle. Buyers must think about future values. As well, investors know that there is always a potential risk in any business transaction. They must consider capital structure, operations, location, market demand, and several other issues.

Memo to Distressed Hotel Investors: Understand the Opportunities and Risks

Hotel Market New York City

Hotel Real Estate News NYC

Determined Investors Choose Distressed Hotels

Are you wondering whether now is the right time to invest in distressed hotels? Many investors are thinking along these lines. The U.S. economy is in recovery and the hotel industry has come out of the recession phase. Since prices might rise in the near future and discounted prices could be a thing of the past, investors are determined to make the most of the present hotel market - especially in major centers like New York City.

Hotel Sales – Past and Present

During 2007, hotel sales priced at $5 million (and above) reached $80 billion. By 2009, sales of hotel properties had dropped to $2.5 billion. In 2010, hotel sales brought in $13.2 billion. During the first quarter of 2011, hotel sales came to $3.4 billion year-to-date through March.

Despite the economic recovery, however, buyers can choose from a wide selection of distressed properties. In fact, several distressed hotels have not showed up yet in the market. The signs are encouraging for investors in hotels especially NYC properties.

Capital markets are showing recovery. As well, an improvement is evident in hotel operating fundamentals. More Hospitality sale transactions and an increase in construction activity are positive signals.

Cautious Hotel Investors

Of course, several investors are proceeding with caution. Potential hotel buyers are uncertain about government policies including taxes and the budget. If there is not a plentiful supply of distressed properties, sellers can expect higher prices.

Investors do not want to make mistakes; they remember the reality and effects of earlier recession periods. Generally, lenders adopt an indecisive strategy.

Wall of Debt

The "wall of debt" exerts a huge influence in this situation. Several investors will wait for various loans to mature in the coming years. They think that owners will be unable to finance and, therefore, could decide to sell at discount prices.

Obviously, owners do not want to be burdened with huge losses. Actually, many owners expect to refinance or wait and sell at a higher price. They are pinning their hopes on a continuing economic recovery and improvement in fundamentals. Owners aim for higher values.

“Bad boy” guarantees (owners are held liable for a loan if a company files for bankruptcy) have resulted in fewer bankruptcies – and a decline in the number of distressed properties. Although varied trends might discourage investment, previously granted loan extensions will expire at a certain point. Lenders will have to work out the loans.

Distressed Hotel Properties

In that instance, owners will be forced to sell properties or return keys to lenders. Often owners realize that stabilization is expensive and risky while a sale might be the better option. Since lenders prefer not to be in the real estate game, more distressed properties should be entering the marketplace.

Buyers who invest in distressed properties must practice "due diligence." Investors examine purchases from every angle. Buyers must think about future values. As well, investors know that there is always a potential risk in any business transaction. They must consider capital structure, operations, location, market demand, and several other issues.

Memo to Distressed Hotel Investors: Understand the Opportunities and Risks

Hotel Market New York City

Hotel Real Estate News NYC

Double the Deals in NYC Hotels Real Estate Transactions

According to the February 16 Hotel Intelligence New York report released by Jones Lang LaSalle Hotels, the volume of hotel deals will double during 2011 in New York City. This year's hotel deal volume is expected to come in between $1.9 billion and $2.4 billion. In fact, the most hotel transactions in the US will take place in Manhattan.

Manhattan Lodging Market

Image courtesy of joneslanglasallehotels.com

Keep in mind that Manhattan has a history of high hotel transaction levels. Total deals have reached $12 billion in the past ten years. In 2010, hotel transactions accounted for $1 billion in Manhattan. Arthur Adler, managing director and CEO-Americas for Jones Lang LaSalle Hotels, expects the 2011 deal volume to rise by 90%-130% over 2010 numbers.

In 2010, the highest growth rate of any major American market was in Manhattan. Last year, more than 25 hotels (almost 5,600 rooms) opened in Manhattan. The above-average number of openings took place as hotels planned in previous peak periods came to life in economic recovery. The luxury market is expected to reach RevPAR growth of more than 10%-12% over 2010 rates in this dynamic NYC borough. RevPAR increase will be spurred on by ADR growth.

Jones Lang LaSalle Hotels Analysis

Jones Lang LaSalle Hotels has done an in-depth market analysis of NYC hotels for the past four years. The reports look at the overall trends in the hotel investment market. When forming their projections, the firm considers the estimated transaction value of properties that are presently on the market. They base their projections on the current offerings that are likely to transact within the year.

Their method of projection makes for reliable results. If a report calculates future NYC hotel transactions based on current properties in the marketplace, the results should give an accurate picture. If a NYC hotel is up for sale, it is almost guaranteed to find a buyer willing to pay the price. The Manhattan market has an intense appeal for buyers and investors.

Why will NYC hotel deal volume double in 2011?

Varied factors will contribute to the huge increase in NYC hotel transactions volume during 2011.

Significant RevPAR recovery
Improvement in debt markets
Investors wanting to sell before expiry of 2007-2012 loan terms
Currency movements
Healthier economic environment - Low cap rates
Market fundamentals
Increased demand for hotel rooms
At or near peak occupancy level
Rise in corporate travel
REITs will be active buyers - Cost of capital is competitive compared to buyers relying on leverage
Foreign investors (especially from Asia and the Middle East) want to invest in NYC hotels
Brands will make investments geared to establishing, revising, or strengthening their presence
Institutional funds seeking liquidity will be among the active sellers

Double the Deals

The NYC hotel market looks promising for 2011 and the coming years. Manhattan will keep its place as the leading market for U.S. hotel investment. New York City is the place to come for double the deals in U.S. hotels.

NYC hotel deal volume to double in 2011

Fashion 26 - A New Brand A WYNDHAM Hotel

The 280-room Fashion 26 hotel has a new brand. The announcement came during Fashion Week in New York City. A hotel named Fashion 26 could not choose a better time to announce a brand change. The perfect time to get a new look!

Now, of course, Fashion 26 does not need a makeover because of its age. The hotel has not been open for a year - although it managed to create quite a past for itself in these few short months. In fact, the hotel's new look is more a 'behind the scenes' change rather than a changed appearance.

Previously, the hotel was known as an "independent." No doubt, that label might fit a building known as "Fashion 26." Independent fashion designers are a rare and innovative breed. Does this hotel share similar characteristics?

If buildings could talk, this establishment would be able to tell an intriguing story. In fact, recent developments suggest that the Fashion 26 hotel will continue to hold our interest in the future. Apparently, the hotel has a secret. At one time, Fashion 26 had been a 'secret' Wyndham. Actually, the hotel ended up as the most stylish Wyndham in New York City.

Recently, the hotel was managed by Highgate Hospitality. Yet it was expected that Highgate's involvement was just a temporary deal. The rumour was that the owners wanted Fashion 26 to be a Hilton Hotel. Coincidentally, the hotel got its new brand during the week celebrating style. Fashion 26 became a Hilton Hotel.

The new Hilton is located on 36th and 7th Avenue. The Hilton New York Fashion District is the name tossed about for the neighborhood. Fashion references abound for the new Hilton Hotel/ previous Fashion 26 hotel.

Yet not every New Yorker is familiar with that name for this neighborhood. The Garment District is the more common name for the area. Within New York City, however, neighborhoods have grown around and sprung from a city section with a classy hotel as its center. The neighborhoods around The Ace, The Hudson, and The Chelsea are prime examples of hotels being central to an area. Therefore, it is not too far-fetched to suggest that many New Yorkers will refer to the Hilton New York Fashion District in the future.

At least, Fashion 26 has proved itself not to be a humdrum property. This hotel is ever changing and taking on new identities. Maybe it speaks well for the NYC industry.

A hotel can change brands and still maintain a strong presence in New York City. Actually, the Big Apple has a big client base of leisure and corporate tourists to depend on for business. All types of hotel brands - economy, boutique, luxury, and more - can thrive in this dynamic Manhattan market.

Will Fashion 26 change much as a new Hilton Hotel?

According to the company, there will not be major changes. In fact, the hotel will be taking incentives from the former Fashion 26 and the Hilton brand and continuing to offer them in the new brand. The free cupcakes familiar to Fashion 26 guests will be on the menu. Collecting and redeeming HHonors points will be possible in the rebranded hotel. The new Hilton gets top honors for acquiring the stylish Fashion 26.

Fashion 26 Becomes Hilton in Yet Another Reflagging