Why do I care about hotels in Manhattan? Stay tuned for coming posts about Morgans Hotel Group (MHGC). Meanwhile, take in this background information:"Hotel occupancy in the city fell about 5 percentage points in December, to 76.3%, according to Smith Travel Research, a level not seen since 2002. The average room rate dipped 10%, to $297.15."
Business drying up for Manhattan hotels:
“I don’t think anybody realized the switch was going to be turned off so quickly,” said Lisa Grossberg, the general manager of the Buckingham Hotel in Midtown Manhattan. “We saw people being more rate-conscious; we saw the renegotiations of corporate contracts as companies tightened their belts in the fall. But then in the middle of December, everything just about stopped.”NYTimes reports glut of new hotels has pushed down room rates:
"...the discounts are an opportunity to stay at upscale, amenity-laden properties for what they normally might pay for a more moderate hotel without the latest perks."
"...the Thompson LES, a new boutique hotel on the Lower East Side... The listed rates for the rooms, with Sferra bed linens, slate bathrooms with rain showerheads and Kiehl’s toiletries, begin at $375 a night. Ms. Alexander paid $149..."
"The GEM Hotel and Wyndham Garden Hotel, both of which opened in [Chelsea]... in November, offered introductory rates starting at $189 at that time. Now, their rates start at $159 and $169."
"New York City had the most openings for the 12 months ending in November, with 54 new hotels adding 7,982 rooms to the mix. In the Miami area, 20 hotels, with 4,155 rooms, opened."