Introduction |  Manhattan Operating History |  New Supply |  Operating Statistics by Hotel Segment
Independent and Branded Hotels |  Operating Statistics by Neighborhood |  Student Survey |  Manhattan Forecast |  Manhattan Sales
Stephen Rushmore
President and Founder, HVS Global Hospitality Services
Michael R. Bloomberg
Mayor of the City of New York
Jonathan Tisch
Chairman & CEO, Loews Hotels
George Fertitta
CEO, NYC & Company
Lalia Rach, Ed.D.
Divisional Dean and HVS International Chair, The Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management
Mark Lomanno
President, Smith Travel Research
Joseph Spinnato
President & CEO,
Hotel Association of NYC
New Supply
Jonathan M. Tisch
Chairman & CEO, Loews Hotels

This year, both as a nation and as an industry, we face economic times unlike any we’ve experienced before. Here in New York City, we particularly feel the impact of the crisis in the financial service sector, which has historically been a mainstay of our economy. It has been a wake-up call to many on the need to diversify our economy, and a reminder that the travel and tourism industry is essential to our economic well-being; it can continue to provide good jobs and generate critical tax revenues. Despite the downturn in travel, New York City remains the #1 destination for international travelers – visitors who stay longer and spend more. New York City tourism has always been essential to our city’s economic health, but today it has the potential to be a cornerstone for our recovery.

In 2008, 14 new hotels entered the Manhattan market, adding 2,195 guestrooms to the market’s inventory as presented in the table below. We note that a few hotels closed for renovations in the same year, including the 132-room Surrey Hotel and the 200-room Pierre Hotel, as well as the Morgans Hotel, which was closed for a six-month renovation. We also note the reopening of the Plaza Hotel.

Name of the Hotel  Room Count Opening Date Type Neighborhood
Holiday Inn NYC Manhattan Sixth Avenue 226 Jun 2008 Midscale Midtown West
Hampton Inn New York Empire State Building 146 Oct 2008 Midscale Midtown East
The Thompson Lower East Side 141 Jul 2008 Boutique Lower Manhattan
Cooper Square Hotel 145 Dec 2008 Boutique SoHo/Lower Manhattan
Wyndham Garden Hotel Manhattan Chelsea West 124 Nov 2008 Midscale Midtown West
Ascend Collection The Gem Hotel Chelsea 81 Nov 2008 Midscale Midtown West
The Greenwich Hotel 88 Apr 2008 Boutique SoHo/Lower Manhattan
Hilton Garden Inn New York City Tribeca 151 Dec 2008 Midscale SoHo/Lower Manhattan
Best Western Bowery Hanbee Hotel 99 Apr 2008 Midscale Lower Manhattan
Hampton Inn Manhattan SoHo 160 Sep 2008 Midscale SoHo/Lower Manhattan
Standard Hotel New York 347 Dec 2008 Boutique SoHo/Lower Manhattan
Four Points Manhattan SoHo Village 150 Sep 2008 Midscale SoHo/Lower Manhattan
Wyndham Garden Hotel Midtown Convention Center 224 Nov 2008 Midscale Midtown West
Hotel Reserve 113 Dec 2008 Midscale Downtown/Financial District
Total 2,195      
Sources: Smith Travel Research; HVS


The following table sets forth the number of new rooms under construction that are anticipated to become available from 2009 through 2011.

Project Location Type No. of Rooms Anticipated Opening Developer Under Construction
Upper East Side
The Mark 25 East 77th Street Luxury 118 Mid 2009 Izak Senbahar & Simon Elias Yes
  The Mark will be converted into 51 co-op units and 100 guestrooms and suites.
Upper West Side
aloft 2296-2308 Frederick Douglass Boulevard Boutique 124 Jun 2010 Capital Dreams LLC  Yes
Midtown West
The Vu Hotel  653 West 11th Avenue Boutique 222 Fall 2009 Horizen Global Yes
  In addition to guestrooms, the Vu will contain an 1,800-square-foot, glass-enclosed bar providing 360-degree views and a swimming pool and whirlpool. This lodging facility will be managed by Kimpton Hotels.
Fairfield Inn Times Square 330 West 40th Street (b/w 8th and 9th Ave.) Mid-scale 244 Mar 2009 The Lam Group Open
  Located adjacent to the Four Points on West 40th Street. The hotel will feature a rooftop lounge and bar, which will be shared with the Four Points by Sheraton. 
Four Points Times Square 326 West 40th Street (between 8th and 9th Ave.) Mid-scale 244 Mid 2009 The Lam Group Yes
  Located adjacent to the 244-room Fairfield Inn Times Square on West 40th Street. The hotel will feature a rooftop lounge and bar, which will be shared with the Fairfield Inn. 
Candlewood Suites 339 West 39th Street Extended-stay 183 Mid 2009 McSam Hotel Group Yes
Holiday Inn Express 343 West 39th Street Economy 210 Mid 2009 McSam Hotel Group Yes
Hampton Inn 337 West 39th Street Mid-scale 186 Mid 2009 McSam Hotel Group Yes
Hilton Garden Inn 63 West 35th Street Mid-scale 296 Mar 2009 Brack Capital Real Estate Open
Staybridge Suites 334 West 40th Street Extended-stay 310 Mid 2009 Mehta Family, LLC Yes
Clarion 342-344 West 40th Street Economy 155 Mid 2009 Greenway Realty Holdings Yes
DoubleTree Chelsea 128 West 29th Street Full-service 241 Mid 2009 McSam Hotel Group Yes
Fairfield Inn 21-23 West 37th Street Mid-scale 92 Mid 2009 Lam Generation Yes
Ace Hotel 1186 Broadway (29th Street) Boutique 280 Mid 2009 GFI Development Co.  Yes
The NoMad Hotel 1170 Broadway (28th Street) Boutique 171 Fall 2009 GFI Development Co.  Yes
Gem Hotel Chelsea 300 West 22nd Street Mid-scale 81 Early 2009 The ICON Group Open
Hotel Indigo 127 West 28th Street Boutique 122 Mid 2009 Fortuna Realty Group Yes
  Property owner Morris Moinian and his Fortuna Realty Group are constructing the first Indigo-branded hotel in Manhattan. The 20-story structure is expected to cost roundly $50 million and will be a mid-scale boutique hotel. 
The Strand Hotel 33 West 37th Street Boutique 177 Fall 2009 Don Glassie Yes
Wyndham 152-158 West 26th Street Full-service 280 Oct 2009 Flintlock Construction Services, LLC Yes
Fairfield Inn Chelsea 114-116 West 28th Street Mid-scale 112 Feb 2010 Midtown West Hotel  Yes
The Chatwal  44th Street (b/w 6th and 7th Avenue) Luxury 88 Early 2010 Hampshire Hotels & Resorts Yes
  In addition to guestrooms, the Chatwal Hotel will contain 6,000 square feet of meeting space as well as an upscale restaurant from Lotus Partners, a business center, and a health club.
element 311 West 39th Street Extended-stay 411 Fall 2010 McSam Hotel Group Yes
Hyatt Place 52 West 36th Street Mid-scale 188 Fall 2010 McSam Hotel Group Yes
Hotel Eventi (Kimpton Hotels) 839 Avenue of the Americas Boutique 287 Early 2010 J.D. Carlisle Development Corp. Yes
InterContinental Times Square 44th Street  Full-service 613 Early 2011 InterContinental Hotels Group Yes
Midtown East
Lexington House Hotel 517 Lexington Avenue Extended-stay 116 Late 2009 Hersha Construction Group/Hunter Roberts Yes
  Hunter Roberts Construction Group is currently providing Construction Management services to this 80,000 square foot, 25-story structure located in Midtown Manhattan. This hotel will feature a restaurant, a fitness, outdoor terraces, and 116 guest rooms.
Andaz by Hyatt 485 Fifth Avenue (b/w 41st & 42nd Streets) Boutique 167 Early 2010 Hyatt Hotels & Resorts Yes
The Setai 400 Fifth Avenue Luxury 214 Mid 2011 The Setai Group Yes
Lower Manhattan
Hilton Garden Inn 6 York Street Mid-scale 150 Jan 2009 McSam Hotel Group Open
The Standard 848 Washington Street (West 13th Street) Boutique 344 Jan 2009 André Balazs Properties Partial Opening
  This lodging facility was developed by Hotels AB (André Balazs) and is the fourth Standard hotel in the U.S. The property will feature extensive food and beverage facilities, including a rooftop lounge, as well as meeting and event space. Soft opening occurred in January 2009 and full opening is expected in June 2009.
Smyth TriBeCa 85 West Broadway Boutique 100 Jan 2009 Thompson Hotels/Pomeranc Group, LLC Partial Opening
Cooper Square Hotel 25 Cooper Square (Bowery) Boutique 145 Jan 2009 Peck Moss Hotel Group Partial Opening
Comfort Inn 61-63 Chrystie Street Mid-scale 60 Mar 2009 BTW Hotels, LLC Open
Holiday Inn Express 126 Water Street Economy 112 Mid 2009 McSam Hotel Group Yes
Crosby Hotel 79-85 Crosby Street  Boutique 86 Sep 2009 Firmdale Hotels London Yes
Trump Hotel & Tower SoHo 246 Spring Street Luxury 391 Sep 2009 Sapir & Bayrock Group Yes
Hotel Reserve 20 Maiden Lane Mid-scale 115 Early 2009 McSam Hotel Group Partial Opening
Andaz by Hyatt 75 Wall Street Boutique 250 Summer 2009 Hakimian Group Yes
  The 42-story building was built in 1986 and will be converted to a luxury hotel containing 250 guestrooms in the lower portion of the building and 350 luxury condominiums on the upper 24 floors. The building will be redesigned by David Rockwell. The lower floors will include meeting space, a restaurant located off Water Street, and a bar.
Sheraton 370 Canal Street Full-service 368 Nov 2009 McSam Hotel Group Yes
The Nolitan 153 Elizabeth Street/40 Kenmare Boutique 60 Jan 2010 Veracity Development Yes
Courtyard 179 Varick Street Mid-scale 122 Jul 2010 Ocean King LLC Yes
Grand Street Hotel 23 Grand Street Boutique 114 Early 2010 Brack Capital Real Estate Yes
  The developer, Brack Capital Real Estate, is planning to build a 17-story rectangular glass tower on Grand Street. In addition to guestrooms, the hotel will feature two restaurants and bar, a lobby lounge, a rooftop bar, a business center, a fitness room, and a rooftop swimming pool.
Mondrian 9 Crosby Street Boutique 274 Early 2010 Cape Advisors, Inc. Yes
  Cape Advisors, Inc. is converting an existing building in Soho and adding 14 floors to the existing 12 levels. The property, which will feature a restaurant, two bars, a rooftop bar, and ±5,400 square feet of meeting space, will be managed by Morgans Hotel Group.
W New York – Downtown & Residences 123 Washington Street Boutique 217 Feb 2010 Moinian Group Yes
  The mixed-use property will consist of 222 condos and 217 guestrooms. Of the 222 condos, 55 will be studios, 125 will be 1 Br's, and 42 will be 2Br's. A total of 64 condos will come furnished. Designed by Gwathmey Siegel & Associates Architects, the hotel will offer meeting rooms, a spa, and a restaurant. The top floor will feature a garden for the residents. The W New York – Downtown Hotel & Residences will be the first W residential development in Manhattan. It will be the sixth W in New York City.
DoubleTree 8 Stone Street Full-service 410 Early 2010 McSam Hotel Group Yes
Club Quarters Hotel 130 Cedar Street Full-service 200 Early 2010 Masterworks Development Company Yes
  The hotel will be a semi-private hotel primarily for member use but occasionally available to the public.
Habita Hotel   West 27th Street (High Line) Boutique 56 Mid 2010 Black House Development Yes
The Dream Downtown 346 West 17th Street (Covenant House) Boutique 316 Late 2010 Hampshire Hotels and Resorts Yes
Holiday Inn 99 Washington Street Economy 370 Late 2010 McSam Hotel Group Yes
Wyndham 93 Bowery Street (Corner Hester Street) Full-service 106 Sep 2010 Unknown Yes
    Total 10,298      

It is important to mention that even though the Manhattan lodging inventory declined from 2004 through 2006 due to condo conversion, room supply is expected to grow significantly in the future. As illustrated in the preceding table, as many as 10,298 new rooms, or 61 properties, will enter the Manhattan market from 2009 through 2011. The proposed supply represents 15.5% of the 2008 Manhattan room supply, increasing the number of guestrooms from 66,438 in 2008 to 76,736 as of 2011. These 10,298 rooms are far more than all the new supply that opened between 1998 and 2007 (5,607 rooms). As a result of the protracted disruption in the capital markets and the slowdown in the U.S. and local economies, the anticipated new supply represents an approximate 36.0% decrease from our estimate last year. The following chart presents the pipeline by neighborhood.

Based on the data outlined previously, Manhattan is forecast to experience a record increase in hotel room supply over the next few years, as can be observed in the following graph.

Of the anticipated new projects, 18 represent mid-scale hotels, or 30% of the total new supply, while 22 hotels, or 36% of the proposed properties, can be classified as boutique hotels. Only three new lodging facilities have been proposed for the luxury segment (The Chatwal, The Setai Fifth Avenue, and the Trump SoHo), not including the reopening of The Mark Hotel. 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. It is also important to note that because of the tightening capital markets, some of the hotel developments proposed for Manhattan may not come to fruition, thereby reducing the number in the current pipeline, which bodes well for the market’s existing lodging facilities.

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