The frenzy surrounding the development of new hotels in the city is set to slow down after the current crop of projects are completed, the New York Post, reports. While over 30,000 new hotel rooms have been created in the last seven years, once the current set of projects are complete in the early part of 2017, that massive increase will be curtailed considerably.
There are currently over 13,000 new hotel rooms set to open in the city in the upcoming year and beyond, according to the Post, but after that there isn't a lot planned.
Already the city has experienced the largest creation of new hotels since the 1930s and the total number of hotel rooms in the city stands at over 102,000. Between January 2014 and October of last year, 9,041 rooms became available at 53 new hotels.
A large part of the anticipated slowdown has to do with the growing cost of building such large scale developments in the city. Another aspect is the proposed Midtown East rezoning, and the subsequent transfer of air rights from Grand Central Terminal that would allow for the conversion of the Roosevelt Hotel into offices. That could set a precedent for similar giant sized hotels being converted, the Post says.
The slowdown however has little to do with demand, which is increasing exponentially. The number of tourists in the city increased from 50 million in 2010 to 58 million last year, and that number is expected to reach 62 million by 2020. That in turn has meant hotel occupancy rates hover at 85 percent for the most part.
· NYC's great hotel boom days are numbered [NY Post]
· Manhattan In Midst Of Hotel Boom [Curbed]
· Proposal Would Aid Sale of Midtown Landmarks' Air Rights [Curbed]