Interest rates and inflation rise. The stock markets are in a downtrend. And the word R is in the air – so R means recession.
The hospitality industry is usually the first to suffer and the first to recover during an economic recession. With the threat of a recession hampering the recovery from the COVID blackout, will hotel developers throw their hands in desperation?
Not exactly. Not yet.
“We have a long-term view of the market,” said Joel Rosen, president of GFI Hospitality, New York, a real estate development and investment firm. “We’ve been here before and weathered the recession. Then the pandemic was the worst situation, worse than the recession. “
Rosen said reservations at GFI hotels are roughly at 2019 levels: “We’re seeing stability in the economy despite high fuel costs and stuff like that. So we don’t know yet. It’s too early to tell. “
According to NYC & Company, the city’s marketing and tourism agency, seven hotels have opened in New York so far this year: six in Manhattan; one in Brooklyn. GFI’s newest hotel, Thompson Central Park, is in its final phase of opening as phase two concludes this fall. A great location like Thompson’s is an important factor, but Rosen said knowing the market is key to longevity.
“Thompson’s proximity to Central Park is great for business,” he said. “But the hotel filled a gap there: there was no lifestyle. There is a top market there, but not Thompson’s. ”
Developer Bryan Woo, EVP at Young Woo and Associates in Manhattan, is betting that the Radio Hotel, which opens in midtown Manhattan in late July, will fill a hole in the hotel’s Washington Heights, a place that for seasoned visitors is far from one card is . (despite the film Lin Manuel Miranda).
“Is there a risk? “Sure,” Woo said. “But it was an old gas station, and we’ve spent years renovating and getting to know the area pretty well.”
Ned NoMad opens at the end of the month. Ned NoMad
Hotel Radio focuses on the local Hispanic community and the needs of nearby Yeshiva University (some “device hyper-targeting” takes religious dictates into account).
“This is a purposeful lifestyle project that is resilient even in times of decline,” said Woo. “It’s our first hotel but we wouldn’t take any chances if we didn’t feel safe. Hotels have suffered during a pandemic, commodity real estate is suffering, but the lifestyle product is evolving tremendously. “
At the other end of the list from Radio Hotel, Hôtel Barrière Fouquet’s New York is opening in fashionable Tribeca this September as a luxury lifestyle hotel led by Joshua Caspi, President of Caspi Development, and believes it is at the top end of the luxury market a recession. – prove.
Nomad’s already built Ritz-Carlton property will open in July. The Ritz Carlton
“We’re two months since opening and we’re already selling the most expensive rooms,” he said. “Despite inflation and rising interest rates, we can look forward to a bright future. Historically the five stars are doing better, I don’t think a recession will not have an impact. “
Although Midtown, a traditional tourist hub, opened the high-profile Hard Rock Hotel New York this spring, and the Grayson Hotel is soon approaching Bryant Park, the Midtown neighborhood’s Nomad is truly brimming with new hotel activity.
Ned NoMad – part of the Membership Collective Group, whose various brands include Soho House – will open in late June and a brand new Ritz-Carlton New York, NoMad, is slated for release in July.
Virgin travels on the 29th and Broadway in late fall. HayesDavidson
The AKA NoMad Hotel is coming later this year and Virgin Hotels New York, a brand new property on 29th Street and Broadway, is due to arrive in late fall.
“We started the Nomad scene with the opening of Ace in 2008,” Rosen said, noting that GFI also has NoMad by James New York. “Now this area has become much more of a hub. James has a Scarpetta restaurant that is delicious; we’re opening a new restaurant in Ace in late summer or early fall. We are very good in the neighborhood. We understand and love it. “