Hotel rooms

9,000 new hotel rooms open in New York this year

Courtesy of Loews Hotels

Loews Regency New York

The supply of hotel rooms in New York won’t be running out anytime soon, with thousands of rooms to open this year alone.

After years of increased supply, about 9,000 new rooms at 53 hotels are expected to open in the city this year, the Wall Street Journal reports, citing data from research firm Lodging Econometrics.

This comes after the city added 41,000 rooms in the decade before the pandemic, increasing the number of rooms in the city by almost 50%. In the third quarter of last year, there were a total of 130 new hotels in the pipeline. The flood of supply comes amid huge challenges for the city’s hospitality industry.

“We are not discouraged,” said Brett Blass, chief operating officer of Triumph Hotels, whose company operates six hotels in Manhattan and is open to adding more. “We believe in New York.”

The city is facing a sharp decline in tourism. Travel restrictions, which prevented visitors from several countries in the United States, were lifted in November. Many hoped the city’s reopening would bring more travelers to the city, but the omicron variant has dampened activity, with several restaurants and Broadway shows closing amid outbreaks and staffing issues. NYC & Co. predicted that tourism numbers would not return to pre-crisis levels until 2025.

Recently, the prolonged poor performance has begun to prompt more Manhattan hotel owners to sell their properties at a loss. In December, RLJ Lodging Trust sold the Midtown DoubleTree at 569 Lexington Ave. to Hawkins Way Capital for $146 million, less than half of what the REIT paid for the property in 2010.

Earlier this month, a majority stake in the Columbus Circle Mandarin Oriental sold for $98 million, well below its pre-pandemic valuations, and the Empire Hotel on West 63rd Street saw its valuation reduced to $137 million, up from $393 million in 2012, according to tracking firm CMBS Trepp. Last year, a special fixer sold the ground lease of the 334-room hotel at 234 West 48th St. — once valued at $126 million — for $4 million.