New hotels open in New York although visitors have yet to return

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Nearly 80 hotels with more than 13,000 rooms are expected to open in 2021. (iStock)

Tourists are yet to return to New York, but new hotels are expected to open en masse this year.

Nearly 80 hotels with more than 13,000 rooms – the most in many years – plan to welcome their first guests to New York in 2021, according to data firm STR, reported the Wall Street Journal.

The pandemic has caused delays in construction, forcing homeowners to push back their openings. But many hotel owners remain optimistic in New York City.

Arlo Hotels is set to open an upscale 489-room property near Hudson Yards in the spring. Other new hotels – including the 74-room Brooklyn Vybe Hotel and the 33-room Baltic Hotel in Brooklyn and the 114-room ModernHaus SoHo – have already opened, according to the Journal.

The hotel openings can be seen as a sign of optimism for the city, but Blasio’s administration seeks to add a political hurdle to hotel development – a proposal his own staff have warned could cost the city $ 7 billion. revenue dollars until 2035.

The occupation is still terrible. In New York City, although many hotels are taking rooms off the market by closing temporarily or permanently, the occupancy rate was only 53.8% for the week ended May 1, below the national average of 57 , 1%. The city’s hotel occupancy rate was 89.8% for the same week in 2019.

The city’s hospitality industry faces serious headwinds, with business travel and tourism plummeting precipitously. Fewer than 37 million people are expected to visit the city this year, up from 66.6 million in 2019.

Some hotels choose not to reopen because if the occupancy rate were too low, they would not be able to meet their operating costs.

[WSJ] – Keith Larsen



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