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US: A study by Keytel, a global alliance of independent hotels, in partnership with Braintrust Consulting Services, shows that 75.5 per cent of new luxury hotels set to be built in New York are currently independent.
78 per cent of newly built rooms over the next few years in New York are expected to be in the upscale, upper upscale and luxury segments.
Across the three segments, luxury has the largest proportion of unbranded hotel rooms, representing 75.5 per cent.
Some of these projects may eventually come under the umbrella of a brand that has yet to be assigned.
Taking into consideration economy, midscale and upper midscale pipelines, 72 per cent of the new supply will consist of rooms in branded hotels (5,666) while 28 per cent (2,235) will be in unbranded hotels.
In terms of location, Manhattan will account for 4,464 of new room supply. Almost 86 per cent of these will be in Midtown followed by 14 per cent in Downtown.
Overall, average ADR in New York City is 21.4 per cent higher than in 2019, reaching nearly $280 per night. Since 2021 and driven by rising ADRs, RevPar has also increased by 26 per cent as of June 2024.
Accumulated inflation between 2019 and 2024 (up 22 per cent) along with rising labour costs is however constraining profitability.Â
The report added that growth in supply could help to stabilise rising prices, especially if authorities decide to ease Local Law 18 which removed 20,000 short-term rental apartments in 2023.
