Hotels For Sale in NYC - OFF MARKET Hotel Properties For Sale in New York

Although specific sectors in the U.S. hotel industry might have no funding or sufficient demand to justify further development, New York City has a record-performing tourism market with room for more growth. Manhattan is experiencing a building boom but a certain city block – Herald Square - is moving beyond the norm to an even higher level of success. Developers are interested in this Midtown block because the construction logistics are right for demolition and redevelopment.

Best Western Plus New York City Herald Square

Best Western developers, LeTap (hotel investment, management, and development firm) recognized a superb setting in the Herald Square market. This prime location has an unparalleled view of the Empire State Building. Views to the East are unobstructed and the hotel is at least four to five stories above the structures to the south on 35th St. As well, Bryant Park and Times Square are close to the building.

“We wanted to be close to Herald Square, and this is one of the only spots in the area with low-rise buildings, which are easy to demolish and rebuild ground-up,” explains Jaz Patel, President of LeTap.

Patel did not reveal the plot's sale price. Yet despite the present competitive investment climate, Patel admitted to a quick on-the-spot deal with the owner. After purchasing the plot, LeTap* bought out the building's four retail tenants. LeTap made a significant investment in this hot hotel market – but in the largest concentration of guest rooms under construction on one block.

Other lodging establishments including The Strand NYC, Hampton Inn Empire State Building, the Morgans Hotel, and Setai Fifth Avenue, as well as a Comfort Inn on 35th St., can be viewed from the Best Western’s rooftop garden. Although Patel must ponder the possibilities of returns, there is little need for concern. Recently, the neighboring Hyatt Place sold for almost $77 million.

The 17-storey, 94-room Best Western, will feature five rooms on Floors 16 and 17. Other floors will have six guest rooms. The NYC standard guest accommodations offer 200 to 220 square feet per room at a midscale but competitive rate (about $225).

Patel notes, “Our target guests are going to be leisure; even in Long Island City, our guest base is probably 70 to 80 percent leisure.”

Although space is at a premium, the common area will have a bar and lounge with flat-screens TVs on the ground level and doors leading to an outdoor patio. The basement level will host breakfast, business, and fitness areas. The building features the dramatic contrast of glass in the front looking through to brick in the back.

“Best Western was the first, and really only, brand we considered. Given the cost of their membership fees, there’s really no better deal to develop in Manhattan from a franchise perspective.” ~ Jaz Patel

*As well as having a presence in Midtown, LeTap operates a Best Western property across the East River in Long Island City, Queens.

NYC Hotels Under Construction - Recent News

• Between 5^th and 6^thAvenues on West 36^th Street - four hotels under development
• Holiday Inn Express and Hyatt Place under construction on 36^th
• Executive Resorts and Hotels, a Canadian hotel management and franchise company, bought four 1,500 square feet (approx.) low-rise buildings at 38-44 West 36th Street.
• January 2012 - Sam Chang and the McSam Hotel Group went under contract to sell a pending 185-room hotel at 52 West 36th Street to Chesapeake Lodging Trust for $76.5 million. The deal is expected to close in the third quarter with the completion of the 25-story Hyatt Place (the brand’s first foray into Manhattan).

Although hotel development and increasing rates will stabilize at some point, this booming Manhattan market shows no sign of any slowdowns in the foreseeable future.

Image courtesy of city-data.com

Although specific sectors in the U.S. hotel industry might have no funding or sufficient demand to justify further development, New York City has a record-performing tourism market with room for more growth. Manhattan is experiencing a building boom but a certain city block – Herald Square - is moving beyond the norm to an even higher level of success. Developers are interested in this Midtown block because the construction logistics are right for demolition and redevelopment.

Best Western Plus New York City Herald Square

Best Western developers, LeTap (hotel investment, management, and development firm) recognized a superb setting in the Herald Square market. This prime location has an unparalleled view of the Empire State Building. Views to the East are unobstructed and the hotel is at least four to five stories above the structures to the south on 35th St. As well, Bryant Park and Times Square are close to the building.

“We wanted to be close to Herald Square, and this is one of the only spots in the area with low-rise buildings, which are easy to demolish and rebuild ground-up,” explains Jaz Patel, President of LeTap.

Patel did not reveal the plot's sale price. Yet despite the present competitive investment climate, Patel admitted to a quick on-the-spot deal with the owner. After purchasing the plot, LeTap* bought out the building's four retail tenants. LeTap made a significant investment in this hot hotel market – but in the largest concentration of guest rooms under construction on one block.

Other lodging establishments including The Strand NYC, Hampton Inn Empire State Building, the Morgans Hotel, and Setai Fifth Avenue, as well as a Comfort Inn on 35th St., can be viewed from the Best Western’s rooftop garden. Although Patel must ponder the possibilities of returns, there is little need for concern. Recently, the neighboring Hyatt Place sold for almost $77 million.

The 17-storey, 94-room Best Western, will feature five rooms on Floors 16 and 17. Other floors will have six guest rooms. The NYC standard guest accommodations offer 200 to 220 square feet per room at a midscale but competitive rate (about $225).

Patel notes, “Our target guests are going to be leisure; even in Long Island City, our guest base is probably 70 to 80 percent leisure.”

Although space is at a premium, the common area will have a bar and lounge with flat-screens TVs on the ground level and doors leading to an outdoor patio. The basement level will host breakfast, business, and fitness areas. The building features the dramatic contrast of glass in the front looking through to brick in the back.

“Best Western was the first, and really only, brand we considered. Given the cost of their membership fees, there’s really no better deal to develop in Manhattan from a franchise perspective.” ~ Jaz Patel

*As well as having a presence in Midtown, LeTap operates a Best Western property across the East River in Long Island City, Queens.

NYC Hotels Under Construction - Recent News

• Between 5^th and 6^thAvenues on West 36^th Street - four hotels under development
• Holiday Inn Express and Hyatt Place under construction on 36^th
• Executive Resorts and Hotels, a Canadian hotel management and franchise company, bought four 1,500 square feet (approx.) low-rise buildings at 38-44 West 36th Street.
• January 2012 - Sam Chang and the McSam Hotel Group went under contract to sell a pending 185-room hotel at 52 West 36th Street to Chesapeake Lodging Trust for $76.5 million. The deal is expected to close in the third quarter with the completion of the 25-story Hyatt Place (the brand’s first foray into Manhattan).

Although hotel development and increasing rates will stabilize at some point, this booming Manhattan market shows no sign of any slowdowns in the foreseeable future.

Image courtesy of city-data.com

Without a doubt, existing Manhattan hotels are magnificent properties. Yet current developers have put the push on to build NYC hotels rather than purchase real estate. Actually, the present demand from publicly traded investors for New York City hotels has made it more practical to develop an establishment rather than buy a building.

NYC Hotel Development

Due to funding difficulties, hotel developers steered clear of Manhattan and other NYC neighborhoods during the recession. Since the record increase in commercial property prices (highest since 2006), developers are returning to NYC boroughs. Except for Shanghai and Dubai, the Big Apple boasts the most guest rooms in the pipeline (25-2008, 27-2009, 34-2010, 22-2011, 23-2012, 9 in 2013, 68 in 2014 and beyond).

Bruce Ford, senior vice president of sales at Portsmouth, New Hampshire's Lodging Econometrics explains, "Right now, it can be cheaper to build than to buy in New York."

Select Service

In fact, 50 NYC hotels are slated to open between autumn 2011 and 2013. Pending developments include a diverse mix of lodging properties. According to Ford, a wide variety of "select-service type of hotels" is planned for New York City. At least half of the hotels slated to open between 2012 and 2013 will be in the economy, mid-scale, and upper-scale sector. Examples include a Holiday Inn on West 31st Street, Hampton Inn on Pearl Street in lower Manhattan, and a Days Inn in the Times Square area.

The year after next looks most favorable for many U.S. developers. Yet 2012 hotel construction should prove to be just as conducive to hotel development as any of the other promising years ahead for NYC lodging. Sixty-eight additional properties are expected to be completed by 2014 and shortly thereafter in the New York hospitality sector.

According to hotel consultants, Lodging Econometrics, such figures represent three times the number of hotel openings in Washington – the city with the second most construction activity in the US. New York takes the number one spot. Indeed, the NYC hotel market leads the cycle in the hospitality industry.

David Loeb, a hotel analyst at Milwaukee-based Robert W. Baird & Co, explains the appeal of NYC properties, “Manhattan is an under-supplied market because it’s a seven-day market. In one week in early October, New York hotels were 91.7 percent occupied. Very few other markets come close to that."

Manhattan Hotels

According to Real Capital Analytics Inc….

• January 1 – September 30, 2011 - average sale price per room - $505,157*

Between May and August 2011, 14 New York hotels sold for an asking price of more than $400,000 per room. The specific hotels include the Radisson Lexington Hotel, Four Points by Sheraton Midtown-Times Square, Affinia Gardens, and the Yotel. One highest price involved the sale by Morgans Hotel Group of the Royalton New York to Irving, Texas-based Felcor Lodging Trust Inc. (FCH) for $84.6 million ($500,447 per room.) According to a PricewaterhouseCoopers study, Affinia Manhattan's rooms sold for $560,685. Affinia Gardens with its residential-style suites could be purchased for $910,866 a room.

• January 1 – December 31, 2010 – average sale price per room – $344,799
• January 1 – December 31, 2009 – average sale price per room - $413,644
• 2006 peak – average sale price per room - $632,894
• Present – companies such as DiamondRock Hospitality Co. (DRH) & Hidrock Realty Inc.–developing hotels-$300-$450,000 a room

* Real Capital concludes that real estate investment trusts are driving the rise in prices for existing hotels. Purchases of lodging properties in Manhattan came in at $1.14 billion (38% of total traded in NYC) between January 1 and September 30, 2011.

Scharger's Story – NYC Hotel Construction

New hotel development in New York City requires the emptying and redevelopment of office buildings as well as demolishing present structures. Ian Schrager who pioneered of the boutique hotel concept has agreed to purchase a NYC development site. As well, Schrager's company is close to finalizing another Manhattan hotel deal. Although the developer has not released project details or proposed prices, Schrager has a plan to develop trendy but affordable lodging in major destinations. The $400,000-$500,000 per room prices make it easier to build a NYC hotel rather than buy an existing property.

Hotel Developers

DiamondRock Hospitality Co.

On January 18, Diamond Rock announced their plan to buy a hotel under development in the Times Square region by the combined efforts of Walton Street and Highgate Holdings. The sale price would be between $112.5 million and $135 million (almost $450,000 per room) – depending on the final guest room count. The planned hotel will open in 2013.

Starwood Capital Group LLC

Founded by Barry Sternlicht, Starwood Capital Group in partnership with Tribeca Associates LLC made a March announcement about their takeover of a development contract from Orient-Express Hotels Ltd. (OEH) for the New York Public Library’s Donnell branch on West 53rd Street. According to a March 16 article in Crain's New York Business, the purchasers expect to spend $400 million on the site (including condominiums, hotel rooms, and a library). The Greenwich, Connecticut-based Starwood did not comment on the cost of the project.

Extell Development Co.

In November 2010, Gary Barnett’s Extell Development Co. announced their intentions to build a 210-room, 135-condominium Park Hyatt Hotel on West 57th Street. This hotel should open in 2012. Extell has not revealed the cost of its development.

Marriott International Inc.

During August, the Maryland-based Marriott International, the largest publicly traded U.S. hotel company, joined with Granite Broadway Development for a 68-story Manhattan project at Broadway and 54th Street. The property will include two hotels (Courtyard and Residence Inn) planned to open in late 2013. The establishments are scheduled to open in late 2013. Marriott did not confirm the cost of the project.

Hidrock Realty Inc.

The New York Hidrock has two projects in the works. The company is redeveloping a former office building at 960 Sixth Ave. in Manhattan’s Fashion District. The final result will be a Courtyard for almost $300,000 a room. According to Hidrock president, Abraham Hidary, the $72 million purchase price includes a bank branch on the bottom floor. In addition, Hidrock has joined with Robert Finvarb Cos. to build SpringHill Suites on West 57th Street at a cost of $53.1 million ($320,000 a room).

NYC Hotel Occupancy Rates

New York City hotels had an 80% occupancy rate from January-August 2011. Besides Oahu, Hawaii, New York City had the second highest occupancy rates in the top 25 markets. Yet the array of new developments, as well as a slowdown in economic growth, could begin to affect occupancies and room rates. After all, the U.S. unemployment rate has been 9% or more in ten months of the past year. On September 27, Joel Ross, principal at Citadel Realty Advisors, investment banking and real estate financing firm, predicted that a decrease in bookings should show up next year. Corporate travel is expected to fall in 2012 as companies hold meetings at their own facilities rather than in hotels.

Slowing Economy

Bloomberg Industries data suggests that global financial firms will cut over 120,000 jobs this year. In addition, the Bank of America Corp. (BAC), the second largest U.S. lender by assets, is undertaking an overall review aimed at decreasing annual costs by $5 billion before the end of 2013. BAC expects to end 30,000 positions in the coming years.

Declining RevPAR

The new supply in the NYC hotel sector will mean a 1%-2% decrease during 2012 in revenue per available room (RevPAR - an industry measure of occupancy and rate). Jan Freitag, vice president at Smith Travel, is expecting a 5.5% rise in RevPAR by the end of 2011. Without a doubt, almost all planned Manhattan hotels will meet with success. New York City is an established and profitable market. The increased supply, however, will have a significant effect on RevPAR growth in 2012.

Building Manhattan Hotels Beats Buying as Development to Surge

Image courtesy of readio.com

Without a doubt, existing Manhattan hotels are magnificent properties. Yet current developers have put the push on to build NYC hotels rather than purchase real estate. Actually, the present demand from publicly traded investors for New York City hotels has made it more practical to develop an establishment rather than buy a building.

NYC Hotel Development

Due to funding difficulties, hotel developers steered clear of Manhattan and other NYC neighborhoods during the recession. Since the record increase in commercial property prices (highest since 2006), developers are returning to NYC boroughs. Except for Shanghai and Dubai, the Big Apple boasts the most guest rooms in the pipeline (25-2008, 27-2009, 34-2010, 22-2011, 23-2012, 9 in 2013, 68 in 2014 and beyond).

Bruce Ford, senior vice president of sales at Portsmouth, New Hampshire's Lodging Econometrics explains, "Right now, it can be cheaper to build than to buy in New York."

Select Service

In fact, 50 NYC hotels are slated to open between autumn 2011 and 2013. Pending developments include a diverse mix of lodging properties. According to Ford, a wide variety of "select-service type of hotels" is planned for New York City. At least half of the hotels slated to open between 2012 and 2013 will be in the economy, mid-scale, and upper-scale sector. Examples include a Holiday Inn on West 31st Street, Hampton Inn on Pearl Street in lower Manhattan, and a Days Inn in the Times Square area.

The year after next looks most favorable for many U.S. developers. Yet 2012 hotel construction should prove to be just as conducive to hotel development as any of the other promising years ahead for NYC lodging. Sixty-eight additional properties are expected to be completed by 2014 and shortly thereafter in the New York hospitality sector.

According to hotel consultants, Lodging Econometrics, such figures represent three times the number of hotel openings in Washington – the city with the second most construction activity in the US. New York takes the number one spot. Indeed, the NYC hotel market leads the cycle in the hospitality industry.

David Loeb, a hotel analyst at Milwaukee-based Robert W. Baird & Co, explains the appeal of NYC properties, “Manhattan is an under-supplied market because it’s a seven-day market. In one week in early October, New York hotels were 91.7 percent occupied. Very few other markets come close to that."

Manhattan Hotels

According to Real Capital Analytics Inc….

• January 1 – September 30, 2011 - average sale price per room - $505,157*

Between May and August 2011, 14 New York hotels sold for an asking price of more than $400,000 per room. The specific hotels include the Radisson Lexington Hotel, Four Points by Sheraton Midtown-Times Square, Affinia Gardens, and the Yotel. One highest price involved the sale by Morgans Hotel Group of the Royalton New York to Irving, Texas-based Felcor Lodging Trust Inc. (FCH) for $84.6 million ($500,447 per room.) According to a PricewaterhouseCoopers study, Affinia Manhattan's rooms sold for $560,685. Affinia Gardens with its residential-style suites could be purchased for $910,866 a room.

• January 1 – December 31, 2010 – average sale price per room – $344,799
• January 1 – December 31, 2009 – average sale price per room - $413,644
• 2006 peak – average sale price per room - $632,894
• Present – companies such as DiamondRock Hospitality Co. (DRH) & Hidrock Realty Inc.–developing hotels-$300-$450,000 a room

* Real Capital concludes that real estate investment trusts are driving the rise in prices for existing hotels. Purchases of lodging properties in Manhattan came in at $1.14 billion (38% of total traded in NYC) between January 1 and September 30, 2011.

Scharger's Story – NYC Hotel Construction

New hotel development in New York City requires the emptying and redevelopment of office buildings as well as demolishing present structures. Ian Schrager who pioneered of the boutique hotel concept has agreed to purchase a NYC development site. As well, Schrager's company is close to finalizing another Manhattan hotel deal. Although the developer has not released project details or proposed prices, Schrager has a plan to develop trendy but affordable lodging in major destinations. The $400,000-$500,000 per room prices make it easier to build a NYC hotel rather than buy an existing property.

Hotel Developers

DiamondRock Hospitality Co.

On January 18, Diamond Rock announced their plan to buy a hotel under development in the Times Square region by the combined efforts of Walton Street and Highgate Holdings. The sale price would be between $112.5 million and $135 million (almost $450,000 per room) – depending on the final guest room count. The planned hotel will open in 2013.

Starwood Capital Group LLC

Founded by Barry Sternlicht, Starwood Capital Group in partnership with Tribeca Associates LLC made a March announcement about their takeover of a development contract from Orient-Express Hotels Ltd. (OEH) for the New York Public Library’s Donnell branch on West 53rd Street. According to a March 16 article in Crain's New York Business, the purchasers expect to spend $400 million on the site (including condominiums, hotel rooms, and a library). The Greenwich, Connecticut-based Starwood did not comment on the cost of the project.

Extell Development Co.

In November 2010, Gary Barnett’s Extell Development Co. announced their intentions to build a 210-room, 135-condominium Park Hyatt Hotel on West 57th Street. This hotel should open in 2012. Extell has not revealed the cost of its development.

Marriott International Inc.

During August, the Maryland-based Marriott International, the largest publicly traded U.S. hotel company, joined with Granite Broadway Development for a 68-story Manhattan project at Broadway and 54th Street. The property will include two hotels (Courtyard and Residence Inn) planned to open in late 2013. The establishments are scheduled to open in late 2013. Marriott did not confirm the cost of the project.

Hidrock Realty Inc.

The New York Hidrock has two projects in the works. The company is redeveloping a former office building at 960 Sixth Ave. in Manhattan’s Fashion District. The final result will be a Courtyard for almost $300,000 a room. According to Hidrock president, Abraham Hidary, the $72 million purchase price includes a bank branch on the bottom floor. In addition, Hidrock has joined with Robert Finvarb Cos. to build SpringHill Suites on West 57th Street at a cost of $53.1 million ($320,000 a room).

NYC Hotel Occupancy Rates

New York City hotels had an 80% occupancy rate from January-August 2011. Besides Oahu, Hawaii, New York City had the second highest occupancy rates in the top 25 markets. Yet the array of new developments, as well as a slowdown in economic growth, could begin to affect occupancies and room rates. After all, the U.S. unemployment rate has been 9% or more in ten months of the past year. On September 27, Joel Ross, principal at Citadel Realty Advisors, investment banking and real estate financing firm, predicted that a decrease in bookings should show up next year. Corporate travel is expected to fall in 2012 as companies hold meetings at their own facilities rather than in hotels.

Slowing Economy

Bloomberg Industries data suggests that global financial firms will cut over 120,000 jobs this year. In addition, the Bank of America Corp. (BAC), the second largest U.S. lender by assets, is undertaking an overall review aimed at decreasing annual costs by $5 billion before the end of 2013. BAC expects to end 30,000 positions in the coming years.

Declining RevPAR

The new supply in the NYC hotel sector will mean a 1%-2% decrease during 2012 in revenue per available room (RevPAR - an industry measure of occupancy and rate). Jan Freitag, vice president at Smith Travel, is expecting a 5.5% rise in RevPAR by the end of 2011. Without a doubt, almost all planned Manhattan hotels will meet with success. New York City is an established and profitable market. The increased supply, however, will have a significant effect on RevPAR growth in 2012.

Building Manhattan Hotels Beats Buying as Development to Surge

Image courtesy of readio.com

The current New York City hotel construction scene bears no resemblance to the state of the industry during the recession. Various investors (management firms, private equity companies, hedge funds) are gaining ground in the NYC hospitality sector during 2011. New York City hotel investment is no longer just for a few primary real estate investment trusts.

Hotels in the Big Apple are been built at an unsurpassed pace. Indeed, over 50% of the hotels planned for this year have already opened in New York City. Several openings were delayed but still managed to be ready in either spring, summer, or early autumn. Additional hotel construction will continue in late 2011 and into the New Year.

NYC Hotels – Open for Business – 2011

Early 2011

• Mondrian New York

The magnificent Mondrian New York opened on February 2011.

Spring 2011

• Four Points

The Four Points by Sheraton Long Island/Queensboro Bridge was expected to open on March 3. Although not a surprise for a Starwood hotel, the hotel opened later on April 28.

Summer 2011

• Aloft Brooklyn

Aloft Brooklyn's opening was delayed first from March 31 to April 31. The actual opening date was June 9.

• Dream Downtown

Dream Downtown was supposed to open on Memorial Day. The hotel's opening was June 13.

• Sanctuary Hotel

The ever-changing Portland Square Hotel – Sanctuary Hotel – reopened (for the most part) towards the end of June.

• Nolitan

Like Hotel Americano, the Nolitan opening came after many delays. The Nolitan at 30 Kenmare Street opened in July after being postponed nine times.

• Flatiron Hotel

Located at 1141 Broadway, Robert "Toshi" Chan's Flatiron Hotel opened towards the end of August. Chan and creditor Long Island Bank had been discussing this deal for a while before the opening.

• Hyatt 48 Lex

The Hyatt 48 Lex was really expected to open in April but the actual date turned out to be August 29.

Autumn 2011

• Hotel Americano

Situated at 518 West 27^th Street, the Hotel Americano designed by Enrique Norton opened in September – following several delays. Originally, a spring opening had been planned for this Chelsea property.

Late 2011 Openings and Possibilities

• Conrad New York at 102 North End and Vesey Streets
• Hyatt Union Square at 13th Street and Park Avenue
• The Out NYC ~ nightclubs in late 2011 but guest room delays
• TRYP by Wyndham
• Graves Charney ~ original opening planned for 2010
• Graves Williamsburg Hotel and Residences

Early 2012

• NoMad Hotel at 1170 Broadway
• The Hilton planned for John F. Kennedy International Airport has also been pushed back to February 2012.

Image courtesy of petitepassport.com

The current New York City hotel construction scene bears no resemblance to the state of the industry during the recession. Various investors (management firms, private equity companies, hedge funds) are gaining ground in the NYC hospitality sector during 2011. New York City hotel investment is no longer just for a few primary real estate investment trusts.

Hotels in the Big Apple are been built at an unsurpassed pace. Indeed, over 50% of the hotels planned for this year have already opened in New York City. Several openings were delayed but still managed to be ready in either spring, summer, or early autumn. Additional hotel construction will continue in late 2011 and into the New Year.

NYC Hotels – Open for Business – 2011

Early 2011

• Mondrian New York

The magnificent Mondrian New York opened on February 2011.

Spring 2011

• Four Points

The Four Points by Sheraton Long Island/Queensboro Bridge was expected to open on March 3. Although not a surprise for a Starwood hotel, the hotel opened later on April 28.

Summer 2011

• Aloft Brooklyn

Aloft Brooklyn's opening was delayed first from March 31 to April 31. The actual opening date was June 9.

• Dream Downtown

Dream Downtown was supposed to open on Memorial Day. The hotel's opening was June 13.

• Sanctuary Hotel

The ever-changing Portland Square Hotel – Sanctuary Hotel – reopened (for the most part) towards the end of June.

• Nolitan

Like Hotel Americano, the Nolitan opening came after many delays. The Nolitan at 30 Kenmare Street opened in July after being postponed nine times.

• Flatiron Hotel

Located at 1141 Broadway, Robert "Toshi" Chan's Flatiron Hotel opened towards the end of August. Chan and creditor Long Island Bank had been discussing this deal for a while before the opening.

• Hyatt 48 Lex

The Hyatt 48 Lex was really expected to open in April but the actual date turned out to be August 29.

Autumn 2011

• Hotel Americano

Situated at 518 West 27^th Street, the Hotel Americano designed by Enrique Norton opened in September – following several delays. Originally, a spring opening had been planned for this Chelsea property.

Late 2011 Openings and Possibilities

• Conrad New York at 102 North End and Vesey Streets
• Hyatt Union Square at 13th Street and Park Avenue
• The Out NYC ~ nightclubs in late 2011 but guest room delays
• TRYP by Wyndham
• Graves Charney ~ original opening planned for 2010
• Graves Williamsburg Hotel and Residences

Early 2012

• NoMad Hotel at 1170 Broadway
• The Hilton planned for John F. Kennedy International Airport has also been pushed back to February 2012.

Image courtesy of petitepassport.com

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

Image courtesy of readio.com

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

Image courtesy of readio.com

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.

Image courtesy of rumbo.es

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.

Image courtesy of rumbo.es