Hotel rates in New York City are ridiculous (today's NYT: "The numbers support the contention that hotels in New York are superexpensive"—Jesus, who knew?), while the new development market appears to be cooling. What to do if you're a hotel owner? Make way for residential development anyway. Braden Keil reports that The Drake Swissotel, at Park Ave. and East 56th, and The Mark, at Madison and East 77th, are cashing in on the residential boom in their own ways. The Drake is taking offers for the whole enchilada—FYI, $450 million is the going rate—while The Mark is raking in about $850,000 per room.
The bigger impact at the neighborhood level will be felt around The Drake, which is expected to be demolished to make way for a new 70-story mixed-use development. "It's a big site, and they've bought a bunch of development [air] rights on 57th Street," a source tells Keil. Begging the question, is it too late for a downzone campaign on the Upper East Side?
· Two More Top Inns Going Residential [NYPost]
· Where $150 Rooms Go for $300 and Up [NYTimes]
· The Mark Hotel [themarkhotel.com]
· The Drake Swisshotel [Swissotel.com]