STILL PLENTY OF ROOMS COMING TO THE CITY THAT NEVER SLEEPS , BUT IS A RECOVERY ON ITS WAY ?
TRENDING
( ALMOST ) BACK IN A
NEW YORK
ROOVE
STILL PLENTY OF ROOMS COMING TO THE CITY THAT NEVER SLEEPS , BUT IS A RECOVERY ON ITS WAY ?
Contributed by JUDITH CROWN
New York City has been working through an enormous hotel construction pipeline for the past several years — the largest in the nation — and one that is expected to keep a lid on rates and room revenue until sometime next year .
With so many properties coming online this year , average rates are expected to fluctuate but essentially remain unchanged from last year , says Sean
Hennessey , clinical assistant professor at the Jonathan M . Tisch Center for Hospital and Tourism at New York University and CEO of Lodging Advisors . The strong underlying demand — occupancy has exceeded 80 % — should result in average rate gains of 3 % to 5 % next year and beyond . “ The city may be over-invested , but it ’ s hard to say it ’ s oversupplied ,” he says .
Some headwinds could prolong the recovery . The Trump travel restrictions and strong dollar could discourage foreign tourists this year . New York ’ s tourism marketing agency , NYC & Company , expects international visitation to fall by 300,000 to 12.4 million as a result of the constraints imposed on six Muslim nations and the accompanying bad publicity . That would be the first decline since 2010 . Although the number of domestic
10 hotelsmag . com May 2017