New York Hotel Investments

New York Hotel Investments

New York Hotel Investments

New York City – Hotel Equity Fund Investment Partners

New York City – Hotel Market Report 2020

New York City continues to be a leader in the U.S. hospitality sector. As one of the world’s top financial centers, NYC boasts a strong economy. This dynamic city is a global hub for corporate headquarters in several areas including finance and services, media, entertainment and telecommunications, as well as manufacturing and trade.

Also, its massive appeal as a tourist destination is a consistent draw. Significant enhancements at John F. Kennedy International Airport and LaGuardia Airport have expanded service capabilities to accommodate more flights and the rising demand.

Between 2013 and 2018, NYC tourism grew steadily with numbers increasing 20.1 percent. According to NYC & Company, New York City’s official convention and visitors’ bureau, there was a 5.5% rise in tourism during 2018 compared to the previous year. The city attracted 61.8 million tourists in 2017 and 65.2 million the following year.

As of August 2019, NYC was on pace to draw 67 million visitors by year’s end. These numbers are a testament to the strong and stable market in the greater New York City area.

If ever the metrics soften in this city for unforeseeable circumstances, New York City rebounds in record time. The “Big Apple” has a history of strong growth – and that is a most significant factor in considering hotel investments. This marketplace can absorb new product quickly and bounce back – bigger and better than ever.

During 2018, NYC far exceeded that year’s RevPAR trend. New York City experienced a remarkable industry metric – 3.5% growth compared to 2.9% for the general U.S. hotel market. RevPAR is a key metric used to measure the health of a hotel market.

The overall view of a hotel market includes strategic planning and capital, allocation purposes, demand and supply, occupancy, average daily rate, and revenue per available room.

Average daily room rates grew year over year during every month (but one) in 2018. The data indicated a growth of 2.7% over 2017 at more than $262 per room. Record-breaking occupancies have meant a steady stream of growth in the hotel pipeline.

Greater demand and increased supply will continue to be a reality for the NYC hospitality market in this new decade. Market-wide occupancy should be in the mid-80s. According to STR (provider of premium global data benchmarking, analytics, and marketplace insights to clients from multiple market sectors), the nation’s industry average was 66% during 2019.

During 2018, the Manhattan lodging market saw an all-time high occupancy rate of 88.1 percent. Once again, this is proof that new supply can be absorbed quickly in this marketplace. Hotel demand can be measured by observing specific factors including tourism and business trends, occupancy levels, and pricing information.

Large-scale developments will drive the demand in New York City. Recent projects such as the revitalized Downtown, redevelopment of the World Trade Center, and the Hudson Yards new retail and restaurant space bring even more opportunities into this already thriving Metropolis. Hudson Yards has become a favorite with tourists. This Westside area of Manhattan is also becoming extremely popular for hotel development.

As well, other anticipated openings early in this decade (such as the expanded Javits Convention Center in March 2021 with its 500,000-square-foot exhibition hall and the largest ballroom in NYC) will generate hotel demand. Supply growth will be in a healthy state.

New York City has a hotel to suit everyone’s taste and budget. Obviously, such a global center and spectacular location is going to have its share of luxury hotels. An increase in world wealth has led to a greater demand for upscale lodging. The NYC hotel industry is responding to accommodate the luxury market as well as other hospitality sectors.

Hotel owners, developers, and investors will always be eager to invest in New York City because it has a unique market – the like of which is only seen in cities such as London, Paris, and other international centers. The Metropolis attracts transient clients and group business at high levels from both local and international customers.

Hotel owners and operators are hopeful about the future state of the New York City hospitality sector. Almost 39 million rooms were sold in NYC during 2018, and that figure is projected to rise as we go into the next decade.

New York City will always capture the interest of anyone who is passionate about investing in the hotel industry. NYC is a strong and resilient market. It is seen as a safe haven in the global marketplace – and there will always be a demand for New York City hotels.

HOTEL EQUITY FUND INVESTMENT PARTNERS

 

Acquisitions and Investments

Hotel Equity Fund is one of the top hotel investment in Europe, and now expanding to New York City, West Hollywood CA, South Beach Miami Florida, Chicago, San Francisco, Washington DC, London, Paris, Berlin, Toronto, Jerusalem and Tel Aviv Israel, with results that have consistently bested industry averages. Much of this success is a direct result of our focus on investor returns, individual assets, and aligning management with the individual needs of owners. Our combination of strong capitalization through Hotel Equity Fund, and a strong track record of experience offer a level of credibility that is nearly unmatched in the industry.

 

 

Investment Criteria

We are aggressively seeking new properties in New York CityWest Hollywood CASouth Beach Miami Florida, ChicagoLos Angeles, San FranciscoWashington DCLondon UKParis,  BerlinToronto ONMontréal Québec, Israel including Tel Aviv and Jerusalem, and feel that our centralized operation of business in New York offers the very type of responsiveness, professionalism and capital resources the industry has been seeking. Please click here to review the investment criteria.

 

Development Opportunities

Our Hotel Equity Fund owned hotel and resort development subsidiary, Hotel Equity Fund Development, has extensive experience in resort, hotel, and golf course development, with recent hotel development and hotel redevelopment projects totaling over $2 billion. Our projects are well known for meeting market demand and for attention to both design and operating detail. Our culture of “listening to the customer” is at the heart of our development process and has allowed properties to excel in both operating performance and value retention.

 

Boutique Hotel Investments

Boutique hotels, also known as lifestyle hotels, vary in shape and size; however, all boutique hotels rely heavily on creative energy and highly personalized service to compete in the overall hotel industry.

Hotel Equity Fund is a respected financial hotel investment firm, utilizing hotel equity funds to assist its hotel real estate developers and partners in gaining favorable returns on their investments. Hotel Equity Fund works with a range of hospitality firms to increase the efficiency and effectiveness of individual hotel properties, ranging from boutique hotels with excellent F&B, premium brands to mid to up-scale well-located properties.

Since 1980, the Hotel Equity Fund and Hotel Equity Fund Partners Investment Program have invested over $2 billion into quality hotel real estate properties with aggregate transaction capitalization of nearly $3 billion. By partnering experienced advisors with each investment partner, Hotel Equity Fund ensures that each property is equipped with a creative vision and practical management plan to achieve long-term financial sustainability and success.

 

Hotel Developments & Acquisitions

Hotel Equity Fund routinely assesses joint venture development opportunities which provide long-term alignment of interests for both Hotel Equity Fund and prospective partners in New York CityWest Hollywood CASouth Beach Miami Florida, Chicago, Los AngelesSan FranciscoWashington DC, Toronto Canada, LondonParis, Jerusalem and Tel Aviv Israel.

Experienced, multi-brand, investment-grade hotel developers, Hotel Equity Fund will take a project from dirt or acquiring an Landmark Building for hotel conversion to a stabilized hotel through hotel disposition. Offering a variety of hotel investment services, our specialized team can meet your unique hotel project requirements including, but not limited to, the following:

 

  • Assist in hotel site selection and property evaluation.

 

  • Evaluate benefits of and selection from available boutique brand or a national brands.

 

 

 

  • Make recommendations regarding legal entity and JV agreement options.Prepare preliminary hotel construction cost estimates.

 

  • Offer professional market study or appraisal recommendations.

 

  • Assist in selection and coordination of attorney, architect, civil engineer, project manager, general contractor,

 

  • FF&E procurement and interior design.

 

  • Provide construction, financing, permanent debt, refinancing and disposition roles.

 

  • Execute long-term management contract services.

Hotel Equity Fund’s proven investment methods mitigate risk and encourage success, combining our investment and management fluency with the strength and potential of partner assets. If you would like to read more about the positive impact we have made with our hotel equity fund, please explore the entirety of this website.