Published on : Wednesday, January 18, 2017
A research report from Lodging Econometrics showed that an estimated 8,612 new rooms in the pipeline for 2017. Bruce Ford, senior vice president of development at Lodging Econometrics said that the rooms opening in these markets would be the first wave of new hotel supply in a healthy hotel market for owners.
CBRE Hotels’ America’s Research, which tracks the industry, also puts New York City at the top of the market with a 6.4% increase over last year, the largest increase of any region. Both firms named these other cities among the most active markets in the USA: Houston, Dallas, Chicago, and Los Angeles.
Charlotte, Denver, Seattle, Austin, and Tampa are also profitable destinations to invest in for the hotel industry as per Lodging Econometrics.
CBRE is also seeing a notable percentage growth in room supply in Washington, D.C., Orlando, Atlanta, Phoenix, and San Diego. The U.S. average percentage growth in supply is estimated at 1.8%, according to CBRE.
New York City will soon see a huge increase in a category called select-service hotels. These would be typically offering similar in-room amenities to full-service hotels but have fewer meeting spaces and restaurants. It has been popular concept of property amongst the hotel runners as they are cheaper to build and run, and they are popular with travellers because they are more reasonably priced yet still offer amenities.
Fred Dixon, president and CEO of NYC & Company, the official destination marketing organization, says the city is on track to receive a record 60.3 million visitors in 2016. He continued that for hotels, there is a steady increase in hotel room nights sold and is, thus supportive of the going investments in new developments.
Among some notable Manhattan projects are: a 315-room CitizenM Hotel in Lower Manhattan, a 14-room Restoration Hardware Hotel by the furniture store in the Meatpacking District, and the 190-room SLS Hotel New York designed by Philippe Starck. It will be a busy year for SLS, as it is also slated to open this summer in Seattle with 184 rooms and views of Elliott Bay.
Boutique hotel guru Ian Schrager will open the 370-room Public in the Lower East Side. In collaboration with Marriott International, he will also debut his second EDITION hotel in New York, a 450-room property in midtown.
Marriott will bring to Manhattan one of its newest brands, the 266-room AC Hotel by Marriott, in the Financial District. Marriott will also introduce its Moxy brand to New York City with a 612-room property near Pennsylvania Station. Queens is getting a 108-room Hyatt Place in Long Island City. And Aloft will open at New York LaGuardia Airport. The Bronx will get a 62-room Holiday Inn Express.
The later half of Staten Island will have a new 190-room hotel which is till unnamed. The largest hotel opening in 2017 is projected to be the 1,200-room Marriott Marquis at McCormick Place in Chicago. the InterContinental Los Angeles Downtown will become part of the tallest U.S. building west of the Mississippi River when the Wilshire Grand Center opens this year.
Ernest Wooden Jr., president and CEO of Los Angeles Tourism and Convention Board, says he expects 9,000 new hotel rooms to be added by the end of 2018. As room inventory has increased, it has almost immediately been absorbed because the demand is so great, he says.
Kimpton is also planning two hotels the Kimpton Downtown Charlotte and the Kimpton Charlotte Dilworth/South End Hotel. The 216-room Kimpton Downtown Charlotte will have 9,175 square feet of meeting space, a restaurant, a fitness centre and a 7,500-square-foot indoor/outdoor rooftop bar.
The 128-room Kimpton Charlotte Dilworth/South End Hotel will feature 4,500 square feet of meeting and event space, a restaurant, outdoor pool and bar, and a rooftop area with views of the skyline.