Despite the slower economy, New York City is experiencing an increase in hotel rooms. David Lichtenstein shows how even in tougher economic times, some commercial real estate can prevail.
In a time where people continue to watch every cent that they spend, there is still a demand for more hotel space in one of the busiest cities on earth. New York City has seen a steady growth in the addition of hotels and hotel rooms in places ranging from the glitz and glam of Manhattan, to non-touristy areas in the five boroughs. This boom in development is great news for commercial real estate developers such as David Lichtenstein.
In an article in the New York Times, it is pointed out that over 4,000 new hotel rooms were added to the existing 74,000 in the city. That was only in 2011. In 2012, the increase is expected rise by 3.5 percent, even more in 2013. The expansion shows no signs of slowing down, as experts have seen no drop in occupancy due to the availability of hotel rooms. The tourism industry in New York City has continued at a steady rate, increasing occasionally depending on the time of year.
As David Lichtenstein can explain, the need for hotels and hotel rooms in New York City is constant. Tourism aside, many companies have regional or main headquarters in the Big Apple. Other companies may spend any excess budget on training and travel, which make it necessary to find hotels in which to lodge employees. Even when travel isn’t for business, there will always be a demand for lodging in prime locations.
Another part of the hotel room increase has come in the form of boutique hotels located in more fashionable parts of the city. While the classically famous hotels of New York City still have a good share of the market with chain hotels, boutiques can offer a more cozy appeal that specializes to the guest’s interests. Many of these hotels are attractive to customers because developers will decorate the hotel to a specific theme related to the history of the building or the neighborhood, adding to the experience. Developers are sure hopeful, if not slightly optimistic, that the trend in hotel expansion will continue steadily.
David Lichtenstein is a commercial real estate developer and founder of The Lightstone Group. Since 1988, he and his group have been leaders in the commercial and residential real estate business with properties being one of the largest, privately held real estate companies.