Hotels

Manhattan Hotels Had Hot 2011, Sez CBRE

The Manhattan hotel market had a strong and encouraging year in 2011, and its 84 percent occupancy rate showed that the market can take in additional inventory in the coming years, according to a recent report released Monday by CBRE. 

hotel room key Manhattan Hotels Had Hot 2011, Sez CBRE

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Investment sales for hotels also rebounded markedly in 2011, more than doubling its sales numbers from the previous year. 27 hotels traded for a total of $3.8 billion, according to the report.

“Manhattan hotel investment sales rebounded significantly in 2011, and 2012 is expected to be a strong year as well,” said Bradley Burwell, a senior associate of CBRE Hotels, in a statement released today.

New York City also added more than 4,100 hotel rooms in Manhattan in 2011. Last year, Mayor Mike Bloomberg announced that the city reached a record 90,000 hotel rooms by year’s end, a 24 percent increase from the previous year.

In other findings from the report:

  • Manhattan hotel capitalization rates should hover around historically low levels while investor demand continues to grow.
  • The hotel occupancy rate in New York will increase by 60 basis points to 81 percent, compared to 65.9 percent for the rest of the country’s hotels.
  • The Average Daily Rate for a hotel room will increase by 4.5 percent to $243.

drosen@observer.com