Brooklyn’s Hotel Boom Sparks Oversupply Worries

At least 32 hotels are in the pipeline in Brooklyn. It’s a record number to have going up all at once. Rates and occupancies are having a hard time holding steady as supply surges both in Brooklyn and Manhattan, where 95 hotels are on the way, according to Robert W. Baird & Co analyst David Loeb. The city’s room count is up 21% in just the last five years, and as of May, NYC and Houston were the only two US cities that posted RevPAR declines, with Brooklyn dropping 1% since the start of this year, Bloomberg reports. Average room rates in Brooklyn dipped 2.9% to $155.71 over that period. Brooklyn’s relatively scant (though growing) office inventory means business travelers are unlikely to cross the river in big numbers to help drive occupancy on weeknights. [Bloomberg]

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