New York City’s hotel market is already one of the most competitive in the world and it’s about to become even more so, with a new wave of hotels opening just as the lodging industry begins to pull out of its worst slump since the Great Depression.
Reuters reports that 6,700 hotel rooms will open in greater New York City this year, the most since at least 2002. In Manhattan alone, the number of new hotel rooms will jump nearly 10%.
But analysts say the increased supply of hotel rooms won’t go to waste, as demand is growing quickly, particularly in the luxury sector. However, the new supply could result in some deals for travellers in periods of typically weaker demand like late spring and early fall.
At 607 rooms, the InterContinental Times Square will be the largest new hotel to open this year. Other notable new properties include the luxury Trump SoHo New York hotel, which opened in April, and The Setai New York, set for a late-2010 debut.
The definition of luxury, some hotel experts say, has shifted over the course of the last few years. At one point it meant something ostentatious but according to hotel executive Ivanka Trump the emphasis has now shifted to quality. "Luxury should mean quality," she told Reuters. "Luxury stands the test of time."
In February, revenue per available room in New York rose for the first time since September 2008, buoyed by higher occupancy. In March, this metric rose nearly 17%, outpacing national recovery by a wide margin.
"New York is always resilient," says Trump. "There's a level of bounceback that other states haven't experienced yet."
