New York City’s Hotel Boom Will Likely Lead to Lower Rates in 2014
A room in Viceroy's New York hotel with a view of Central Park. / The Viceroy Hotel
The hotel boom is a positive sign of a rebounding economy, New York City’s growing tourism sector, and employment opportunities. However, too much inventory built too fast will lead to tight competition that forces hoteliers to cut room rates.
Excerpt from Wall Street Journal
New York is experiencing its biggest hotel expansion in a generation, attracting a host of new brands and developers betting that the good times will continue.
But the race to build or convert dusty properties into modern lodgings already has sparked a debate about whether the additional rooms can be absorbed without putting downward pressure on hotel-room rates by next year.