Even with AirBnB luring part of the market and Expedia and Kayak keeping room rate increases modest, LW Hospitality Advisors CEO Dan Lesser, a panelist at Bisnow's 5th Annual NYC Hotel Investment and Development Summit on Feb. 20, tells us that hasn’t affected favorable conditions to buy, sell and develop hotels.
Some 20,000 new rooms have gone up over the last several years, but occupancy across the city has actually risen a tad in that same period, says Dan. (So whatever, Democratic National Convention, we didn't need you anyway. Enjoy the Liberty Bell.) Low interest rates have also helped keep cap rates low, enticing owners to sell, while the recent re-emergence of CMBS has helped drive lending for those doing the buying, many of whom are based overseas, he says.
Herrick Feinstein real estate group partner Paul Shapses will moderate at our event. Paul's worked on the financing, acquisition and workout of more than $12B of resort and hotel properties worldwide. He says every major metric in New York is generally favorable except land cost, which is making it harder to justify new hotel development with expanding supply.
The wave of foreign investment into NY hotels isn’t new, Paul says, pointing out that in the '80s the big story was Japanese investment. But some stuff is new, including record-breaking trades like the recent sale of the Baccarat for $2M a key before it ever opened, and hotel sites converting to condo because developers are paying so much for land that they want a return faster than a hotel can provide. To hear more, join us for Bisnow's 5th annual NYC Hotel Investment and Development Summit on Feb. 20 at the Roosevelt Hotel (above), starting at 7:30am.
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