New York City Hotel Prices Reflect Demand

In Observance of the Thanksgiving Holiday in the United States, there will be no Daily Lodging Report – Asia Pacific on Wednesday, November 27, and Thursday, November 28. Regular service will resume on Monday, December 2.

The New York Times reported that hotel prices in New York City are back, with hotels charging an average of $417 per night in September, the highest monthly rate ever for the city. The problem is the article was negative instead of positive, quoting tourists who were visibly upset over the rates. CoStar said the only place in the US with higher nightly rates is Maui. The article said that officials at the NY City Tourism + Convention have yet to see indications that room rates are stopping tourists from visiting, estimating that 65 million people will visit this year, just shy of the 66.6 million people in 2019. Travelers the New York Times interviewed think differently, saying the rates are influencing where they stay, with many opting to stay in New Jersey or Long Island or with friends. Others have postponed their trips until rates come down if they ever do. With a 91% occupancy rate in September, it looks to us like the NYT was seeking out negative commentary to fit the story theme. Then again, there are two other issues at play here. First is the Airbnb situation, with more than 92% of local listings removed to comply with new regulations – and that brand using hotel rates to push a narrative. The second is that 11% of the 136,000 hotel rooms were set aside to house migrants. The City Council is considering loosening some restrictions on short-term Airbnb rentals.

New York City’s hotel real estate landscape is witnessing a significant turnover as hotelier Sam Chang accelerates his exit from the business. Records note the recent sale of a Holiday Inn Express located on W. 29th Street, which fetched almost $60 million. The 228-key property has been acquired by Prospect Ridge through its entity Cactus Street PropCo, as reported by Crain’s New York Business. The deal arrives on the heels of a series of sales by Chang, signaling a move toward retirement for the long-time hotelier. Chang’s latest transactions extend beyond Manhattan, reaching boroughs such as Queens. The Business Journal cites the sale of a Long Island City property slated for a DoubleTree by Hilton hotel development on 9th Street. The sale price recorded was $55.6 million, with the buyer securing a $36.1 million loan from the State Bank of Texas for the Queens property. These sales mark the continuation of a divestiture spree reflected in the flurry of hotel sales in New York over the recent years, including the disposals of locations such as the Long Island City Holiday Inn, a Times Square hotel complex, and a Chelsea Marriott project. Despite attempts made to precisely calculate how much of Chang’s portfolio remains, this information stays under wraps for now.

The former Bradley Center in downtown Milwaukee is set to be converted into part of a new Moxy Hotel. NCG Hospitality and the Milwaukee Bucks announced that the company has finalized plans to build the downtown hotel project adjacent to the upcoming FPC Live concert venue, which will open late next year. The Moxy Hotel project is set to break ground in late 2025 and open in spring 2027. The building is nine stories with 162 rooms. The new hotel joins the Trade Hotel, just north of the arena, which is also owned by NCG Hospitality and opened last year.

IHG Hotels & Resorts announced the opening of a new-built Holiday Inn Express hotel in Bronx, New York. The hotel offers 90 rooms, 468 square feet of meeting space, and an extensive fitness center. Holiday Inn Express & Suites Bronx – NYis owned by Third Ave BX LLC and managed by The Sandu Group.

The iconic Hotel Grim in Texarkana, Texas, has officially opened as the Lofts at the Grim. After years of vacancy and neglect, developers spent around $42.7 million to bring the building back to life. The project was financed by local, state, and federal funds. The Lofts at the Grim has space for 93 apartments.

A pair of Norwalk development firms are planning a major property redevelopment at the Circle Hotel in Fairfield, Connecticut, consisting of a larger, four-story inn and what could be one of the biggest apartment buildings in town. The firms, whose partners own the hotel land through their companies, have drafted plans to build a 110-room inn and a 250-unit apartment building on the lot while preserving the nearby Circle Diner where it stands. The inn and apartment building would each total four stories and raise the number of parking spaces from 170 to 533. The developers, Clayton H. Fowler and Edward Gormbley, are the principles of a limited liability company titled FH Hotel Enterprises, which owns 441 Post Road, LLC, the entity that bought the hotel property in 2014.

Cobblestone Hotel in Lynden, Washington, is now open. After delays in the construction process, the hotel quietly opened its doors on October 29 with an official grand opening ceremony tentatively planned for early winter 2025. Although the hotel itself opened last month, Wissota Chophouse, the steakhouse attached to the hotel, officially opened on November 5. Almost all of the Cobblestone’s in-house facilities are now open to the public as well, except for the hotel’s pool area, which officials hope to have open to the public in the coming weeks after a final inspection is completed.

Mirbeau Inn & Spa has three locations in New York and one in Massachusetts. The company has decided to expand its brand of European-inspired boutique hotels, spas, and resorts in the Mid-Hudson Valley, namely, Mirbeau Inn & Spa Beacon. Ground was broken during the construction of the re-imagining of the 64-acre former Howland Family Estate, also known as “Tioronda,” which had been left uninhabited for 20 years. The historic wellness center is expected to open its doors to the public in winter 2026. Their signature ponds and gardens will adorn the countryside estate, which will be restored to the National Park Service Historic standards. The family-owned Mirbeau Inn & Spa also intends to newly construct a chateau building, which will house the majority of the 72 guestrooms and suites. The new Mirbeau Inn & Spa Beacon will feature 21 treatment rooms. Amenities will include a meditation pool, decompression room, and resting area, as well as an aqua terrace with hot pools, cabanas, and an outdoor bar. The historic Howland Mansion dining rooms will be used for a Bistro & Wine Bar. Mirbeau Inn & Spa Beacon will offer 3,000 square feet of meeting and conference space with an outdoor tented area.

Personnel Moves

Five Star Group announced that Kimberly Rowell has been named Executive Vice President of Five Star Hospitality Management. With over 35 years of hospitality leadership, Rowell has worked for such leading industry organizations as Blackstone, Winegardner & Hammons, ZMC Hotels, and HP Hotels. Additionally, Dream Capital, Five Star’s affiliated full-service commercial real estate investment firm, announced it has named Justin Patel Senior Associate, Investments and Asset Management. Patel most recently was a senior asset management analyst with Peachtree Group.

Gekko Group, a subsidiary of Accor Group and a leading player in Travel Tech in Europe, announced the appointment of Adam McKnight as Director of International Growth, a newly created and strategic role. With over fifteen years of experience in the B2B travel sector, McKnight is tasked with accelerating Gekko Group’s expansion into international markets, including new territories across Asia-Pacific, the United States, and South America. As Director of International Growth, McKnight will be responsible for developing and executing market penetration strategies while adapting Gekko Group’s offerings to local needs. By working closely with regional partners, he will play a key role in driving revenue growth and enhancing Gekko Group’s international reputation.

The Central Romana Corporation announced its appointment of Jason Kycek as Chief Marketing Officer of its Hospitality, Tourism, and Real Estate Division. In the new capacity, Kycek will oversee the corporation’s brand, communication, and marketing strategies while continuing his role as Senior Vice President of Sales and Marketing at Casa de Campo Resort & Villas. Previously, Kycek served as the Vice President of Sales and Marketing for Occidental Hotels & Resorts.

Europe Highlights

Hilton continues its rapid expansion in Europe’s resorts market with four new franchise agreements that strengthen its Mediterranean portfolio. The newly signed resorts in Greece, Portugal, and Croatia will introduce unique experiences under the Hilton Hotels & Resorts, Tapestry Collection by Hilton, and Curio Collection by Hilton brands. These new properties include the Hilton Mykonos Beach Resort & Spa, scheduled to open in 2026. Under a franchise agreement with Vasileios Lamprou Ksenodochiakes Epichiriseis S.A., the resort will feature 75 guestrooms and suites. Following a franchise agreement with CHC Hotels, Sound of the Sea Karpathos, Tapestry Collection will open in the spring of 2025 with 42 rooms and one cottage with 14 rooms offering private pools and six rooms equipped with mini spas. The 184-room Casa de Sada Algarve Curio Collection by Hilton is set to open in Algarve, Portugal, in the second half of 2025 under a franchise agreement with Crimson Hotels. Hotel Preko Ugljan, Curio Collection by Hilton will soon open on Croatia’s Ugljan Island following a franchise agreement with Mr. Hrvoje Pezic of PREKO d.o.o. The new-build resort, expected to open in the summer of 2025, features 65 thoughtfully designed rooms, including seven spacious suites. Hilton’s focus on bringing resorts to sought-after destinations has led to significant growth across Europe’s Mediterranean coasts, with the opening of 10 new resorts across Greece, Spain, Italy, Croatia, and Malta in 2024 alone.

Japan, Mexico, Qatar, Amsterdam, and London will welcome new Rosewood Hotels in 2025, showcasing unparalleled luxury and redefining travel experiences globally. Introducing the first Rosewood property in Japan, Rosewood Miyakojima will boast 55 designed villas and four distinct dining venues and the Asayaintegrated wellness concept. Opening April 1, Rosewood Mandarina will join the brand’s prestigious portfolio in Mexico. The property offers 134 luxurious suites, five restaurants and bars, and the signature Asaya spa. Slated for a 2025 debut, Rosewood Doha will feature 155 guestrooms and suites, 162 serviced apartments, 276 residences, a variety of dining options, and a plethora of upscale amenities. Coming soon to the Dutch capital, Rosewood Amsterdam will transform the historic former Palace of Justice. The property will feature 134 rooms and suites, three restaurants, and the Asaya wellness concept. Set in London’s Mayfair district, The Chancery Rosewood will offer 144 luxurious accommodations. Rosewood Hotels & Resorts continues its expansion with new properties planned for Rome, Milan, Seoul, Shanghai, Crete, and Mexico City.

Criterion Capital has acquired One Princess Street in the City of London. The acquisition is the latest development in Criterion’s plans to grow its Zedwell portfolio and open 8,500 rooms by 2027 in central city locations, including York, Manchester, and Edinburgh. The company recently secured a £25 million investment facility from Cynergy Bank to aid in the expansion of the sleep-focused hotel concept. The Zedwell portfolio includes hotels in Park Lane and Greenwich as well as sites in Manchester and Edinburgh. The company also has 13 new sites in development.