New York Hotels are Cheaper to Build than Buy
- Oct 30, 2011
Strange as it might seem, New York’s hospitality industry is heading toward a construction boom similar to pre-recession times. Around 50 new hotels are expected to open by the end of 2013 in the Big Apple, and 68 more are scheduled for completion in 2014, reports Bloomberg, quoting data revealed by hotel-consulting firm Lodging Econometrics. As compared to 2008, when only 25 new hotels were opened, or 2009 with 27 hotels, Lodging Econometrics’ predictions are gratifying to say the least.
Also strange–but perfectly fitting the current economic facts–is the fact that at the moment it’s cheaper to construct new buildings than buy existing ones in New York. Redevelopment of old office buildings or demolition of existing structures can be viable options as well.
One such new development is the 210-room Park Hyatt Hotel, which is being built by Extell Development Co. on West 57th Street, says Bloomberg. The facility will also feature 135 condominiums. A former office building at 960 Sixth Avenue is being redeveloped by Hidrock into a Courtyard-branded hotel at a cost of $72 million. Also worth mentioning is the 68-story property that is currently being developed by Granite Broadway Development and Marriott International Inc. at Broadway and 54th Street. According to Bloomberg, the property will have a Courtyard-branded facility and a Residence Inn hotel, both of which are scheduled to open toward the end of 2013.