Lodging Econometrics (LE) has released the latest update on hotel development in the New York, NY market ahead of the NYU International Hospitality Industry Investment Conference (NYU Conference).
According to the Q1 2024 LE Market Trend Report, New York has a total of 78 projects comprising 13,549 rooms in the hotel construction pipeline, making it the tenth largest pipeline by projects in the U.S.
The New York market leads the top 50 U.S. markets with the highest number of hotels currently under construction, totaling 47 projects and 7,655 rooms. Additionally, there are 8 projects with 1,079 rooms scheduled to start construction within the next 12 months, and 23 projects with 4,815 rooms in the early planning stages.
Within New York, the largest hotel construction pipelines are found in three market tracts: the New York City area (including Brooklyn East, the Bronx, and Staten Island) with 25 projects and 2,096 rooms; Midtown South with 11 projects and 2,535 rooms; and Midtown West/Times Square with 10 projects and 4,131 rooms. Together, these three areas account for 59% of the projects and 65% of the rooms in the market’s total construction pipeline.
The market tracts with the most projects currently under construction are the New York City area with 16 projects and 1,261 rooms, Midtown South with 7 projects and 1,515 rooms, and the JFK airport/Jamaica area with 7 projects and 851 rooms.
In the first quarter of 2024, the New York market outpaced all others in the U.S. by adding 12 new projects totaling 1,660 rooms, the highest number of new projects added. It also led the market for construction starts in Q1 2024.
By the end of Q1 2024, the New York market ranked as the third largest in the U.S. for combined renovation and conversion activity, with a total of 30 projects and 8,020 rooms. Additionally, the New York market ranked seventh among the top 50 U.S. markets for the number of newly opened hotels in Q1 2024.
Looking forward, forecasts indicate that the New York market will lead the nation in hotel openings for the remaining three quarters of 2024. LE forecasts a total of 26 projects with 2,910 rooms opening in the New York market in 2024. In 2025, New York is projected to rank sixth in forecasted new hotel openings, with 17 projects and 2,409 rooms.
