New York Hotel Occupancy Rises But Investment Sales Decline
New York City’s hotel occupancy rate climbed 120 basis points in 2017, well ahead of the 40-bp increase statewide, according to Marcus & Millichap. Tourism to the city hit a new record high last year, and a new ad campaign designed to encourage longer stays could bode well for the lodging sector this year.
That being said, Marcus & Millichap noted fewer investment sales across the New York City metro area over the past two years. In particular, the firm said fewer select-service assets changed hands across New York City during the period, with the majority of hotel sales in this segment occurring in Manhattan.
“Institutional investors primarily targeted these properties, which traded with average first-year returns in the mid-5% to low-7% band,” according to Marcus & Millichap’s 2018 Investment Forecast. “A surge in construction for upscale and upper midscale hotels could provide buyers with additional opportunities for select-service assets.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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