While the Brooklyn new supply pipeline is substantially smaller than that of Manhattan, the borough has recently experienced supply changes, some examples of which are listed below.
- The 216-key Moxy Brooklyn Williamsburg opened in March 2023.
- Quadrum Global purchased The Williamsburg Hotel at a bankruptcy auction in the first quarter of 2023 and rebranded it as the Arlo Williamsburg in September 2023.
- In June 2023, the former Hotel Indigo Brooklyn at 229 Duffield Street was purchased by Webster Apartments for conversion to co-living housing for women working, studying, or interning in New York City.
- In 2023, the 104-key hotel that had been under construction at 291 Livingston Street in Downtown Brooklyn for the past few years was placed in bankruptcy by the development entity. No updates have been announced since the November 2023 bankruptcy auction.
- Numerous hotels, both independent and nationally branded, have opened in the eastern, central, and southwestern sections of the borough. The inaugural New York City Avid Hotel opened in the Dyker Heights neighborhood in September 2023.
Brooklyn’s recently completed and planned new development, adaptive reuse and redevelopment projects, and addition of public green spaces are anticipated to contribute to the borough’s continued growth. Some of these changes are described below.
The Brooklyn waterfront areas continue to attract new residential and commercial development projects. The DUMBO waterfront (Hudson River) has been enhanced by the upgrades to the Brooklyn Bridge Park. In Brooklyn Heights, CIM Group has transformed the former Watchtower building complex into the new Panorama Brooklyn office, retail, and entertainment complex. The Greenpoint-Williamsburg waterfront (East River) is also appealing to commercial developers. In September 2023, Two Trees Management Company unveiled the completed major adaptive reuse project known as The Refinery at Domino in Williamsburg that features modern office spaces and amenities. Two Trees is currently developing One Domino Square, a residential complex that will feature 600 units (condominiums and rental apartments); both towers topped out in mid-December 2023. Moreover, Two Trees’ River Ring Waterfront Master Plan is in the planning stage, to be constructed near The Refinery at Domino over seven years. The River Ring development is planned to feature 1,050 new apartments (including 263 affordable units), a custom-designed YMCA facility, and a three-acre waterfront park.
River Ring Waterfront Master Plan Rendering Photo Courtesy of Two Trees Management Company
Meanwhile, neighborhoods in the eastern section of Brooklyn, including Brownsville, Cypress Hills, and East New York, have been undergoing gradual revitalization. New multifamily developments with affordable units in this area have either been under construction or have recently opened, with approval prior to the expiration of the 421-a property tax break. In May 2023, Mayor Adams and the NYCEDC announced plans for the $500-million redevelopment of the Broadway Junction subway station hub into a regional transit center. This redevelopment will include the enhancement and modernization of the subway station, pedestrian-street safety improvements, and the creation of two public plazas. This major project is expected to create more than 2,000 construction jobs and stimulate additional affordable housing projects. Groundbreaking is anticipated in 2027, with completion slated for 2030.
Overall, these projects will help revitalize Brooklyn and generate demand for hotels in the area.
Our strategic positioning within local markets empowers us to conduct primary interviews with key market participants. This approach ensures we obtain real-time insights and current data for each market we operate in. For more information about the impact of developments in the New York City boroughs or for help making informed investment decisions that align with your goals and risk tolerance, please contact Patricia Shih or Roland deMilleret, MAI, your HVS New York City hospitality experts.