In 2009, the Manhattan lodging market experienced a noteworthy increase in room supply with the addition of 2,892 new rooms, or 17 hotels. At the same time, roundly 1,300 rooms in Manhattan were taken off the market near the end of 2009 for renovation purposes. The 1,301-room Milford Plaza near Times Square closed on December 12th and suspended its renovation plan indefinitely due to the lack of financing. Some hotels remained open during renovations in 2009 and early 2010 including:

We note that Starwood removed the Sheraton flag from the 665-room Sheraton Manhattan Times Square while they redevelop the property. The hotel will remain open during the redevelopment, and as of April 2010, will be operated by Starwood as an independent property. In addition, the 192-room Helmsley Middletowne Hotel, one of four Manhattan hotels in the estate of the late Leona Helmsley, plans to close its doors in May 2010, according to a filing with the New York State Department of Labor.

The following table lists the hotels that opened during 2009.

Name of the Hotel	Room Count	Opening Date	Type	Neighborhood
Hilton Garden Inn West 35th Street	298	Feb 2009	Mid-scale	Midtown West
Smyth Tribeca	100	Feb 2009	Boutique	Downtown
Fairfield Inn Times Square South	244	Feb 2009	Mid-scale	Midtown West
Ace Hotel New York	260	May 2009	Boutique	Midtown West
Comfort Inn Manhattan Bridge	60	Jun 2009	Economy	Downtown
Four Points Times Square South	244	Jun 2009	Mid-scale	Midtown West
Doubletree Chelsea	236	Jul 2009	Mid-scale	Midtown West
Candlewood Suites Times Square South	188	Jul 2009	Extended-stay	Midtown West
Hampton Inn Times Square South	184	Jul 2009	Mid-scale	Midtown West
Holiday Inn Express Times Square South	210	Jul 2009	Mid-scale	Midtown West
Comfort Inn New York	70	Aug 2009	Economy	Midtown West
Hotel 99	99	Sep 2009	Economy	Upper West Side
Kimpton Ink 48 Hotel	222	Sep 2009	Boutique	Midtown West
Hotel Indigo Chelsea	122	Oct 2009	Boutique	Midtown West
Crosby Street Hotel by Firmdale	86	Oct 2009	Boutique	Downtown
The Strand	177	Nov 2009	Boutique	Midtown West
Fairfield Inn & Suites Manhattan	92	Dec 2009	Mid-scale	Midtown West
Total	2,892

PROPOSED HOTELS

The following table sets forth the number of new rooms that are anticipated to become available from 2010 through 2011.

Project	Location	Type	No. of Rooms	Anticipated Opening	Developer	Under Construction
Upper Manhattan/Uptown
aloft	2296-2308 Frederick Douglass Boulevard	Boutique	124	Jul 2010	Capital Dreams LLC	Yes
Midtown West
Staybridge Suites	334 West 40th Street	Extended-stay	310	Apr 2010	Mehta Family, LLC	Yes
Distrikt Hotel (Clarion)	342-344 West 40th Street	Economy	155	Feb 2010	Greenway Realty Holdings	Open
The NoMad Hotel	1170 Broadway (28th Street)	Boutique	171	Early 2011	GFI Development Co.	Yes
Fashion 26 (Wyndham Hotel)	152-158 West 26th Street	Full-service	280	Spring 2010	Flintlock Construction Services, LLC	Yes
Fairfield Inn Chelsea	114-116 West 28th Street	Mid-scale	112	Feb 2010	Midtown West Hotel	Yes
The Chatwal	130 West 44th Street	Luxury	88	Spring 2010	Hampshire Hotels & Resorts	Yes
	Hampshire Hotels & Resorts will open The Chatwal New York in the spring of 2010. The hotel will re-create the iconic glamour and style of the 1930’s Gotham. It will be located on the Great White Way, the theater district block in the building that was originally host to the Lambs Club, America’s first professional theater club. The hotel will be affiliated with the Leading Hotels of The World.
element	311 West 39th Street	Extended-stay	411	Aug 2010	McSam Hotel Group	Yes
Cassa Hotel & Residences	45th Street bet. Fifth and Sixth Avenues	Boutique	166	Spring 2010	Tecton Hospitality/Desires Hotels	Yes
Hotel Eventi (Kimpton Hotels)	839 Avenue of the Americas	Boutique	292	Spring 2010	J.D. Carlisle Development Corp.	Yes
InterContinental Times Square	44th Street	Full-service	613	Jul 2010	InterContinental Hotels Group	Yes
YOTEL New York	440 West 42nd Street	Boutique	669	Apr 2010	Yotel Limited/IFA Hotels & Resorts	Yes
	YOTEL will open a 669-room hotel in West Times Square in 2011 as part of Related Company’s 1.2-million-square-foot, 60-story complex, which will include residential units and the Frank Gehry-designed Signature Theater. The YOTEL property is being designed by the Rockwell Group and Softroom and will feature a restaurant, a bar, meeting rooms, a Club Lounge, and a large terrace space.
Midtown East
48Lex Hotel	517 Lexington Avenue	Boutique	116	Late 2010	Hersha Construction Group/Hunter Roberts	Yes
Andaz by Hyatt	485 Fifth Avenue (b/w 41st & 42nd Streets)	Boutique	184	Fall 2010	Hyatt Hotels & Resorts	Yes
Gansevoort Park	420 Park Avenue South	Boutique	249	Summer 2010	Tawil Group & Achenbaum/Kislin Group	Yes
	Hotel will include three levels of outdoor rooftop space totaling over 13,000 square feet dotted with fireplaces, a plunge rooftop pool, a lounge, and event space. In addition to 249 guestrooms and suites that average over 450 square feet, the hotel will offer a full-service spa by Exhale and a 10,000-square-foot signature restaurant.
The Setai	400 Fifth Avenue	Luxury	214	Sep 2010	The Setai Group	Yes
Lower Manhattan
Holiday Inn Express	126 Water Street	Economy	112	Jul 2010	McSam Hotel Group	Yes
Trump Hotel & Tower SoHo	246 Spring Street	Luxury	391	Apr 2010	Sapir & Bayrock Group	Yes
	The 46-story, 391-room glass tower hotel will feature Quattro Gastronomia Italiana restaurant, the Spa at Trump, and other Trump signature services.
Andaz by Hyatt	75 Wall Street	Boutique	253	Jan 2010	Hakimian Group	Open
	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	Sep 2010	McSam Hotel Group	Yes
The Nolitan	153 Elizabeth Street/40 Kenmare	Boutique	60	Mid 2010	Veracity Development	Yes
Courtyard	181 Varick Street	Mid-scale	122	Sep 2010	Ocean King LLC	Yes
The James New York	23 Grand Street	Boutique	114	Summer 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 a bar, a lobby lounge, a rooftop bar, a business center, a fitness room, and a rooftop swimming pool.
Mondrian	9 Crosby Street	Boutique	274	Mid 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	May 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	Late 2010	McSam Hotel Group	Yes
Club Quarters Hotel/ (World Center Hotel)	130 Cedar Street	Full-service	200	Early 2010	Masterworks Development Company	Open
High Line Hotel (Habita)	West 27th Street (High Line)	Boutique	56	Late 2010	Black House Development	Yes
The Dream Downtown	346 West 17th Street (Covenant House)	Boutique	316	Late 2010	Hampshire Hotels and Resorts	Yes
Select-Service Hotel	99 Washington Street	Mid-scale	370	Late 2010	McSam Hotel Group	Yes
Wyndham	93 Bowery Street (Corner Hester Street)	Full-service	106	Sep 2010	Unknown	Yes
		Total	7,523

Source: HVS New York Office

It is important to mention that even though the Manhattan lodging inventory declined in 2004, 2005, and 2006, supply experienced a noteworthy increase in 2009 and is expected to grow substantially in 2010 and 2011. As illustrated in the preceding table, as many as 7,523 new rooms, or 31 properties, may enter the Manhattan market from 2010 to 2011. The proposed supply represents 10.7% of the 2009 Manhattan room supply, increasing the number of guestrooms from 70,420 in 2009 to 77,943 (assuming a full room count) as of 2011. The following chart presents the pipeline by neighborhood.

It is important to note that the recent protracted disruption in the capital markets could still have an impact on the development stages of the current pipeline. Of the anticipated new projects, boutique hotels dominate the mix, equating to 48% of the new supply, while full-service properties rank next, accounting for 19%. The following chart illustrates the anticipated new supply for Manhattan, consisting of luxury, boutique, full-service, mid-scale, extended-stay, and economy hotels.