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In 2004, three new hotels entered the Manhattan market: the 187-room Hotel Gansevoort, an upscale boutique hotel, opened in March 2004 in the Meatpacking District of Lower Manhattan; the 42-room Solita Hotel opened in August 2004; and the 110-room Hotel on Rivington opened in October 2004. We note that these properties are all boutique hotels. In addition, one hotel reopened in July 2004. This lodging facility had previously operated as the 188-room Doral Park Avenue and closed in November 2003 to undergo a $19-million renovation and expansion program, including the addition of 17 guestrooms; the 205-room property reopened in mid-July 2004 as the 70 Park Avenue Hotel, an upscale boutique hotel affiliated with Kimpton Hotels. We note that the Regent Wall Street, the InterContinental Central Park South, and the Mayflower closed in January, March, and August of 2004, respectively; these three properties are expected to be converted to luxury condominiums. The following table lists the openings of several new hotels, as well as the reopening of hotels in Manhattan in recent years.

Name of Hotel	Location	Type	No. of Rooms	Opening Date	Developer/Comments
Midtown West
Herald Hotel	34th St. & Broadway, SE corner	Extended-Stay	60	Jan-00	JEMB Realty
Red Roof Inn	6 West 32nd Street	Economy	171	Jun-00	Apple Core Hotels
Hilton Times Square	42nd St. (between 7th & 8th Aves.)	Upscale	455	Jun-00	Forest City Ratner
Sofitel	44th St. (between 5th & 6th Aves.)	Upscale	398	Jul-00	Accor
The Muse	130 West 46th Street	Boutique	200	Aug-00	Cornerstone
Hudson Hotel	57th St. (between 8th & 9th Aves.)	Mid-scale	810	Nov-00	Ian Schrager Hotels
Bryant Park Hotel	40th St. (between 5th & 6th Aves.)	Boutique	130	Feb-01	Pilevsky & McNally
The Chambers Hotel	56th St. (between 5th & 6th Aves.)	Boutique	77	Feb-01	Ira Drukier and Richard Born
Comfort Inn	442 W. 36th (between 9th & 10th Aves.)	Economy	56	Jun-01	Heena Hotel, LLC
W Times Square	47th St. & Broadway (SW corner)	Boutique	509	Dec-01	Intell Real Estate/Starwood
Best Western	522-24 W. 38th St. (bet. 10th & 11th Aves.)	Economy	83	Jan-02	Unigroup Hotel, LLC
City Club Hotel	55 West 44th Street	Boutique	65	Jan-02	Metropolitan Hotels, LLC
Ritz-Carlton	50 Central Park South	Luxury	277	May-02	Millennium Partners
Hotel 41	216 West 41st Street	Boutique	47	Aug-02	Private Investment Group
Westin Times Square	270 43rd St. & 8th Avenue	Upscale	863	Oct-02	Tishman Urban Development Corporation
La Quinta Inn Manhattan	17 West 32nd Street	Economy	182	May-03	Apple Core Hotels
Hampton Inn	W. 24th Street� (between 6th & 7th Ave.)	Mid-scale	144	Aug-03	Hersha Hospitality
Mandarin Oriental	10 Columbus Circle	Luxury	251	Nov-03	Related Co./Mandarin Oriental Hotels
Sheraton Four Points	West 25th Street	Mid-scale	158	Dec-03	Unigroup Hotel, LLC
Dream Hotel (formerly Majestic)	210 West 55th Street	Boutique	220	Oct-04	Reopened following extensive renovation
Midtown East
Thirty Thirty	East 29th St. (bet. Park & Lexington Aves.)	Mid-scale	251	Jul-00	PMG
Library Hotel	299 Madison Ave. at 41st St.	Boutique	60	Aug-00	Henry Kallan
Dylan Hotel	52 East 41st Street	Boutique	107	Oct-00	Morris Moinian/Allied Hospitality
Park South Hotel	122 East 28th Street	Boutique	143	Sep-01	Atlantic Stars
Le Marquis	12 East 31st Street	Boutique	123	Sep-01	Le Marquis Associates
The Alex	205 East 45th Street	Boutique	203	Sep-03	Izak Senbahar/Simon Elias
The San Carlos - Reopened	150 East 50th Street	Boutique	147	May-03	San Carlos Hotel, Inc.
70 Park Avenue Hotel	70 Park Avenue	Boutique	205	Jul-04	Kimpton Hotels

As illustrated in the following table, the majority of the new supply in Manhattan, since 2000, has been in the form of boutique properties. Overall, boutique hotels represent 20 out of the 42 hotels that opened/reopened in Manhattan between 2000 and 2004; however, the boutique hotels only represent roundly one-third of the guestrooms that entered the market during that period. This is mainly due to the nature of the boutique hotels, which, in general, contain fewer guestrooms than hotels in the other categories, with exception of the W branded properties. It is noteworthy that none of the boutique hotels opened or reopened in either Downtown or the Upper East Side.

Name of Hotel	Location	Type	No. of Rooms	Opening Date	Developer/Comments
Upper East Side
The Melrose Hotel (formerly Barbizon)	140 East 63rd Street	Upscale	306	Jun-02	The Melrose Hotel Company
SoHo/Lower Manhattan
Tribeca Grand	6th & White Streets	Boutique	203	May-00	Hartz Mountain Industries
W Hotel	Union Square, Park Ave. So. & 15th St.	Boutique	270	Nov-00	Starwood/Related Cos.
60 Thompson St.	60 Thompson Street	Boutique	101	Feb-01	Pomeranc Group
Howard Johnson�	135 East Houston	Economy	46	Dec-01	Metro One Hotel, LLC
Maritime Hotel	Ninth Ave (between 16th and 17th St.)	Boutique	125	Jun-03	Private Developers
Hotel Gansevoort	Ninth Ave and 13th Street	Boutique	187	Mar-04	WSA Management, Ltd
Solita Hotel	159 Grand Street	Mid-scale	42	Aug-04	SoHo Grand Center, LLC
Hotel on Rivington	107 Rivington Street	Boutique	110	Oct-04	Paul Stallings
Downtown
Embassy Suites	Battery Park City	All-Suite	463	Jun-00	Forest City Ratner
Ritz-Carlton Battery Park	2 West Street	Luxury	298	Jan-02	Millennium Partners
Marriott Financial Center - Reopened	85 West Street	Upscale	504	Jan-02	Host Marriott Corporation
Embassy Suites - Reopened	Battery Park City	All-Suite	463	May-02	Forest City Ratner
Millenium Hilton - Reopened	55 Church Street	Upscale	565	May-03	CDL Hotels

The following table illustrates hotels that have closed in Manhattan in recent years.

Name of Hotel	Location	Type	No. of Rooms	Opening Date	Developer/Comments
Midtown West
The Helmsley Windsor Hotel - Closed	100 West 58th Street	Upscale	(240)	Nov-03	Conversion to residential use
Inter-Continental CPS - Closed	112 Central Park South	Luxury	(211)	Apr-04	Conversion to residential use
The Plaza - Closed	Fifth Avenue at Central Park South	Luxury	(457)	Apr-05	Partial conversion to residential use
Upper West Side
Empire Hotel - Closed�	44 West 63rd Street	Boutique	(381)	Dec-03	Conversion to residential use
Mayflower - Closed	15 Central Park West	Mid-scale	(365)	Aug-04	Conversion to residential use
Upper East Side
Hotel Delmonico - Closed	Park Ave. and 59th Street	All-Suite	(152)	Apr-02	Conversion to residential use
Stanhope Park Hyatt - Closed	995 Fifth Avenue	Luxury	(185)	Jan-05	Conversion to residential use
Downtown
Regent Hotel - Closed	55 Wall Street	Luxury	(144)	Jan-04	Conversion to residential use
Total			�������� (2,135)

Eight hotels closed for full or partial condominium conversions from April 2002 through April 2005, accounting for a total of 2,135 guestrooms, or slightly over 3.0% of the 2004 room inventory. These conversions reflect the strength of the Manhattan condominium market. We note that these conversions were primarily limited to upscale residential neighborhoods mainly around Central Park where land and buildings are in short supply, and condominium prices are high. These properties were all upscale or luxury in nature. Due to the limited number of upscale/luxury lodging facilities available for condominium conversion, as well as the strength of the Manhattan lodging market, fewer conversions should occur in the next few years.

It is worth noting that Elad Properties acquired the 805-room Plaza in October 2004, and, at the time of this survey, the plans were to convert the Plaza into a mixed-use development containing ±150 luxury condominium units, ±165,000 square feet of high-end retail space, three food and beverage outlets, and a 348-unit luxury hotel. These plans were a result of negotiations between the 900 union workers at the property and Elad Properties; originally, the plans were to reduce the guestroom inventory to 150 units. The tentative agreement also called for the preservation of The Plaza's Palm Court, Oak Bar, and the Ball Room. In addition, the 185-unit The Stanhope Park Hyatt closed in January 2005 in connection with its sale for condominium conversion.

Proposed Hotels

As illustrated in the following table, as many as 2,337 rooms (not reflecting the unknown room count of the proposed Allen Street property), or 18 properties, may enter the Manhattan market through 2007; we note that we have not factored in the Courtyard by Marriott that is expected to be located at 54th Street and Broadway, as it was on hold as of the time of our survey. It is important to mention that even though three properties closed in 2004, and with the expected closure of the Plaza Hotel in 2005, the Manhattan lodging supply is expected to continue to grow over the next three years, albeit at a slow pace.

We also note that the 357-room Residence Inn, which is under construction at 39th Street and Sixth Avenue, will be the first branded extended-stay product in Manhattan. Most of the anticipated new supply represents limited-service hotels, while six of these properties can be classified as boutique hotels. It is interesting to note that no new lodging facilities have been proposed for the luxury segment before the reopening of the significantly smaller Plaza Hotel in 2007. We further note that significant barriers to entry, including high construction costs, prohibitive land costs, and a lack of available sites, continue to remain key factors when considering construction of lodging facilities in Manhattan. Thus, only the most financially feasible projects are likely to reach fruition. The following table sets forth the number of new rooms that are anticipated to become available through 2007.

Project	Location	Type	No. of Rooms	Anticpated Opening	Developer	Rating
Midtown West
Courtyard by Marriott	NW Corner 54th & Broadway	First Class	200	Late 04	Harry Gross	On Hold
Hampton Inn	W. 31st Street� (between 6th & 7th Ave.)	Mid-scale	136	Feb-05	Hersha Hospitality	Opened
Hotel QT	W. 45th Street (between 6th & 7th Ave.)	Mid-scale	140	Feb-05	Andre Balazs	Opened
Holiday Inn Express	W. 45th Street (between 5th & 6th Ave.)	Mid-scale	129	Jul-05	Presidential Suites, LLC	5
Residence Inn	39th Street & 6th Avenue	Extended-Stay	357	Nov-05	Harry Gross	5
Comfort Inn	39th Street & Eight Ave.	Mid-scale	70	Jul-06	Metro One Hotel, LLC	3
Wingate Inn	35th Street (between 7th and 8th Ave.)	Mid-scale	92	Mid 06	Private Developer	5
Holiday Inn Express	29th Street & Seventh Ave.	Mid-scale	195	Late 06	Metro One Hotels, LLC	3
Plaza Hotel	5th Avenue at Central Park South	Luxury	348	Apr-07	Elad Properties	4
Midtown East
Fifth Avenue	373 Fifth Avenue	Boutique	60	Jun-05	Hersha Group	5
Upper East Side
Courtyard by Marriott	92nd Street & First Avenue	First Class	226	Jan-06	Madison Equities	5
Courtyard by Marriott	125th Street and Park Avenue	First Class	222	Spring 06	Majic Development Group	3
Downtown
Blue Moon Hotel	100 Orchard Street	Boutique	22	Spring 05	Randy Settenbrino	5
Greenwich Village Hotel�	Hudson and 13th Streets	Boutique	195	Early 05	Madison Equities	2
Hampton Inn	320 Pearl Street	Mid-scale	65	May-05	Hersha Hospitality	5
Downtown Hotel	TriBeCa	Boutique	83	Mid 05	Robert De Niro	3
Unnamed Hotel	188 Church Street	Boutique	45	Dec-05	Hersha Group/Sam Chang	5
Hilton Garden Inn	York St. & Avenue of the Americas	Mid-scale	150	Early 06	Meisel & Cohen	5
Four Points by Sheraton	66 Charlton Street and 7th Avenue	Mid-scale	150	Mid 06	SoHo Village Hotel, LLC	5
Allen Street*	Allen Street @ Houston and Stanton	Boutique	112	Mid 06	Jason Pomeranc	2
1 = Planning Stage 2 = Rumored development, less than 50% chance of reaching fruition 3 = Land acquired, no financing in place, likely to occur 4 = Financing in place, not under construction 5 = Under construction 6 = Reopening * Thirty-two of the 112 units will be hotel condominiums