Since the turn of the century, New York City has seen a rise in construction that includes residential and commercial space. While office buildings are going up in all of the boroughs, it is hotel construction that is competing with residential spaces for future construction dollars.
Prior to this hotel construction boom, the reputation of Brooklyn hotels was less than flattering. According to the Observer, Brooklyn hotels are getting a make-over, and future construction of New York City hotels seems to be skewed in favor of Manhattan and Brooklyn.
The Added Hotel Rooms Since 2010
According to the NY Post, 18,000 rooms were added to the New York City between 2010 and 2015. That represents the largest amount of added rooms in a five-year span in the city’s history. But the hotel construction bonanza does not stop there. There are 36,000 added rooms being planned right now, with 12,600 of those rooms currently either under construction or waiting to break ground.
Of the rooms currently under construction, 5,600 are being built in Manhattan. But it is interesting to note that 2,600 of those rooms are being built in Brooklyn hotels projects, which means that Brooklyn and Manhattan represent more than 50 percent of all current hotel construction going on in all five boroughs.
The Brooklyn Hotel Boom And Future Outlook
Over the past few years, Brooklyn has added 4,300 new rooms to its hotel population. Existing hotels such as the Wythe Hotel in the Williamsburg district are getting makeovers and appealing to an entirely new audience. Future construction of hotels in Brooklyn seems to be on track to break records, but the big question is whether or not developers are getting their money’s worth. Without sustained profitability, the bump in Brooklyn hotels could stop as quickly as it started.
The Bisnow.com website tells a story of a new hotel construction project that will bring 196 new rooms to Brooklyn Hilton when it is completed. But the developers of the Brooklyn Hilton have decided not to waste any time in getting their maximum value for the project as the hotel is already up for sale. The estimated selling price would range between $78 million and $98 million when the deal is closed. Considering that the developers spent $38.5 million to purchase the site in 2012, that would lead to a profit that would double the initial investment.
Projects In The Works
With the economy still recovering from the 2008 collapse, many people in Brooklyn and New York City, in general, are wondering if now is a good time to start building hotels with hundreds of room. Bisnow gives a list of some of the larger projects in the pipeline and assures people that there is and will be a demand for more hotel rooms in New York City.
The largest hotel currently in planning is the Moxy that will be located in Manhattan. Despite its hefty price tag, the developers are confident that they will have no problem filling the hotel’s 625 rooms on a regular basis.
Another interesting twist to the New York City construction boom is that niche and boutique hotels are also part of the new construction. Facilities like the Q&A Residential Hotel and the Paul Hotel prove that not everyone who comes to New York City is looking to stay in a 50-story facility.
There is a lot of construction going on right now and planned for the future throughout New York City. The Bronx, Manhattan, and Brooklyn are seeing a rise in residential construction while Brooklyn and Manhattan seem to be sharing in new hotel development. There is no doubt that New York City is growing and that more and more businesses are taking root in the Big Apple. With all of the activity going on now, developers are putting their money on the idea that New York City’s growth is more than a trend, it is becoming a way of life.