It took time , but Lower Manhattan in New York filled up again after 9 / 11 .
PERSPECTIVE
THE TIME TO INVEST in Urban Markets is Now
Contributed by DANIEL LESSER , LW HOSPITALITY ADVISORS
According to Britannica , urbanization “ is the process by which large numbers of people become permanently concentrated in relatively small areas forming cities .” Throughout history , people have been attracted to cities as centers of culture , learning and economic opportunity . Urbanization is on the rise all over the globe and currently more than half of the world ’ s population lives in metropolitan areas . As the global population is likely to continue increasing , urban areas are anticipated to grow as well .
Effects of the COVID-19 pandemic hallowed out many U . S . downtown central business districts , and numerous urban cores are no longer considered bustling centers of activity . Much has been written relative to the negative consequences of the continued work from home phenomenon , resulting in empty offices that have led to a perception of “ doom loops ” and the death of downtowns affecting numerous major U . S . cities . Walking around New York , and in particular San Francisco , looks and feels starkly different compared to pre-COVID times as reduced levels of business travel , retail store closings , homelessness and elevated levels of crime are taking their toll .
On Park Hotels & Resorts ’ Q1 2023 earnings call , Thomas Baltimore Jr ., the firm ’ s chairman , president and CEO , stated : “ Turning to our urban markets . We were particularly encouraged by better-than-expected group performance in San Francisco with Q1 convention room nights up over 200 % to over 140,000 room nights versus the same period last year .” Baltimore further opined : " When you think about San Francisco , we have no doubt in our view that certainly San Francisco comes back . It ' s not a matter of if , but
54 hotelsmag . com Jul / Aug 2023