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New York City's Hotel Boom Is Fizzling Out

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Plans for only 512 hotel rooms have been filed since the beginning of the year

The hotel construction boom that descended on the city in 2010 has begun to ease up its white-knuckle grip. Plans for only 512 hotel rooms in six buildings have been filed throughout the city since January according to TRD. Compare that to the 36,000 rooms plans have been filed for since 2010.

The hotel boom has been running out of fuel for the past few years. In 2015, plans for 4,630 rooms came down the pipeline, and even that was down from 2014's filings, which brought 9,012 rooms. TRD points out that the decline in plan filings comes with a general decline in construction throughout NYC (hell-o no 421-a), but the drop in hotel filings far surpasses the slowdown in the residential market.

Still, the downturn doesn't come soon enough for the city's existing hotels. The average cost of a New York City hotel room is on the decline as the use of home share websites like Airbnb is on the rise. An average NYC hotel room now costs $266/night, which is the lowest its been since 2009.

But NYC is still attracting record amounts of tourists. In 2015, a record-setting 59 million people visited New York. Now just imagine how all of this would have played out had Brooklyn cinched the gig to host the Democratic National Convention.