The New York Hotel Industry has come under tremendous pressure due to the Coronavirus Pandemic and has almost completely stopped travel to New York City.
Construction at 159 Broadway, across from Peter Lugar restaurant, planned as a 26 story tower with apartments, 235 room hotel with a restaurant, sky bar, pool and condominiums has filed for bankruptcy. Just as the Tillary Hotel in Downtown Brooklyn at 85 Flatbush Avenue has also filed for bankruptcy.
It is estimated that possibly 20% of New York City hotel rooms could close permanently. According to The Wall Street Journal, hotels such as the W Hotel at 8 Albany Street and the Maxwell Hotel at 541 Lexington Ave have closed permanently. According to the Real Deal Magazine, Sunstone Hotel investors gave the 478 unit hotel The Hilton Times Square back to it's lender, saying it would not reopen.
The list of closures goes on and on with The Omni Berkshire Place, The Hotel Pennsylvania, The Roosevelt Hotel, The Novotel New York Times Square Hotel, The New Yorker, Millford Plaza, The Courtyard by Marriott in Herald Square and The Hotel AKA in the financial district at 84 Williams Street.
Jan Freitag, Vice President of Smith Travel Research which forecasts supply and demand in the Hotel industry says “the bar to put somebody on a plane for business travel is suddenly much higher”. “Leisure travel will lead the recovery but group travel must recover in order for the hotel industry to recover”.
The Jacob K Javits Center which typically hosts 175 business events in a normal year has only 9 events scheduled for all of 2021.
According to Vijay Dandapani President and CEO of the Hotel Association of NYC “ultimately, meaningful recovery for the hotel sector will come as people feel safe, a timeline variable that remains the biggest unknown. “many hotels won't make it until that point”.
If you are interested in selling your property or you know someone who is planning to sell their Brooklyn or New York property, whether a single family residential property, an apartment building, a commercial property, mixed use, multi family, coop or condo, vacant land or a development opportunity, call us. You will be very happy that you did.
We always bring our clients the top market price for their property and provide exceptional personalized service from initial consultation to closing.
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Accord Real Estate Group
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