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Brooklyn Hotel Boom Is Creating a 'Glut' of New Rooms

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There are literally dozens of new hotels planned or already under construction in Brooklyn, but a new report from Bloomberg Business says that, despite the borough's recent rise in popularity when it comes to events and restaurants, actually getting people to stay the night might be an uphill battle. The report found that there are 32 hotel properties planned or under construction in Brooklyn, but according to analyst David Loeb of Robert W. Baird & Co., developers are facing declining occupancies there as room costs decrease in Manhattan.

In the first five months of this year, Brooklyn's occupancy rate fell one percent to 76.8 percent while average room rates fell 2.9 percent to $155.71. Manhattan also declined: occupancy down 1.4 percent to 82.4 percent and rates down 3.3 percent to $255.60. However, Manhattan has two big advantages: there are significantly more tourist spots there, and more office space, which means more business travelers.

As hard as a Brooklyn hotel venture might be for a big chain or even an independently-run line from a big chain, it's even harder for stand-alone locations. "If you are a stand-alone, unaffiliated hotel, I am doubtful of your success," said Bruce Ford, senior vice president and director of global business development at research firm Lodging Econometrics. "It's important to not confuse Brooklyn with Times Square."

Plus, there is one more thing for a prospective Brooklyn hotel developer to consider: Airbnb.
—Evan Bindelglass is a local freelance journalist, photographer, cinephile, and foodie. You can e-mail him, follow him on Twitter @evabin, or check out his personal blog.
· New York Hotel Onslaught Brings Glut of Rooms to Brooklyn [Bloomberg Business]
· More hotel coverage [Curbed]