Crains New York - January 28, 2013 - (Page 15)

THE LIST NEXT WEEK: New York City’s Largest Hotels Top Executive Recruiters ONLINE: Check out NYC’s largest new hotels at crainsnewyork.com/ multimedia/galleries Ranked by number of rooms THE SCOOP TRENDS SPOTLIGHT ocal hotels are working to keep pace with surging tourism, which hit a record 52 million visitors last year.Six of the largest hotels added rooms,but most of the 1,688 new rooms came from new properties. In total, 17 of the largest hotels reported renovations during 2012. Only the New York Palace (No. 21) reported fewer rooms, because it is renovating. All 899 of its rooms are expected to be available in the next several months. “There’s not a question in anybody’s mind that you want to renovate to get more rooms into the market,” said Mike Walsh, Northeast regional vice president for Morgans Hotel Group and general manager for Hudson (No. 11), which now has 866 rooms after adding 35 in a recent renovation. It converted a mostly vacant residential floor into guest rooms. In February, Hudson’s food-and-beverage suite, Hudson Hall, will be reborn as Hudson Commons, a modern-day beer and burger joint. Other hotels—including the New York Marriott Marquis (No. 2), the Westin New York Grand Central (No. 15) and the Wellington Hotel (No. 20)—have also upgraded their restaurants in the burgeoning hospitality market. The city now has 16.3% more hotel rooms than in 2008, according to NYC & Company. Another 10.4% gain is expected by 2015. Yet demand is expected to increase by more than 3% and room rates by at least 5%, according to PKF Consulting. Although the average room rate continues to rise—in 2012 it was $280, up $3—many of the new hotels belong to lowerpriced chains, including Holiday Inns; a 148-room Hampton Inn near the United Nations, expected to open in March; and a 90-room Fairfield Inn in Chinatown, expected to open in June. “We’ve been gradually increasing the proportion of more moderately priced rooms,”said John Fox,a senior vice president at PKF Consulting. “The whole pie is increasing as well, as we see the city’s visitation numbers continue to grow.” —emily laermer If you build it ... HOTELS PREP FOR SUPER BOWL WITH UPGRADES L ')1,+ #4 ,/( &4C?3 A0 "0B +:=6 "+ #4 ,/( //',11 /.2'0 =:,/B,D "0B +:=6 "+ &#/1,+ #4 ,/( '*#0 .2/# &0A09?3 A0 "0B +:=6 "+ NYC avg. Avg. room hotel inventory occupancy 2008 76,412 83.5% 2009 2010 2011 2012 80,899 86,641 89,655 91,343 81.5% 85.5% 85.4% 87.0% Sources: NYC & Company, PKF Consulting and Smith Travel Research ... they will come Direct visitor spending in NYC, in billions $36.9 $34.5 $32.0 $31.5 $28.2 ’08 ’09 ’10 ’11 ’12 Source: NYC & Company ! !! AS THE CLOCK TICKS DOWN toward the 2014 Super Bowl, local hotels are gearing up for the big game. About 40 will complete development of more than 7,500 rooms in time to cater to the 400,000 visitors expected for the weekend’s activities. The 353-room Loews Regency Hotel New York, on Park Avenue, for one, is closed until fall for a $70 million renovation. The entire building—including its restaurant, lobby and rooms—will be gutted and upgraded. Jonathan Tisch, the chairman of Loews Hotels & Resorts, is co-chairman of the NY/NJ Super Bowl Host Committee. “The goal and the focus of the entire team is to have it open for the JONATHAN TISCH, Loews chairman fall of 2013 to coincide with the events of the Super Bowl,” said a Loews Regency spokeswoman, who added that the property plans to host related events during the week of the game. “In anticipation of the Super Bowl, we tend to see these kinds of capital improvements,” said Kathleen Davis, president and chief executive at SMRI, an organization that studies sports research trends, and a professor of sports marketing at the University of Southern California. “These Super Bowl fans tend to stay several days and spend upward of $600 or $700 a day.” Many Marriott-managed hotels will likely require a two- or three-night minimum stay for that weekend. Many expect to sell out. Also opening before the game will be four Marriott Courtyards and a 173-room SpringHill Suites. Courtyard is an official hotel of the NFL and will participate in game promotions. Some of these hotels—including a 68-story Courtyard and Residence Inn to open in November near Central Park—have been in the works for a decade or more. A spokeswoman called the timing “serendipitous.” Hotels closer to MetLife Stadium are also renovating. The on-site Marriott will spend $34 million before game day. The nearby Renaissance Meadowlands and Sheraton Meadowlands, as well as the Holiday Inn and La Quinta Inn in Secaucus, N.J., are also shelling out millions for upgrades. The NFL has already contracted 20,000 hotels rooms for media, teams and partners in both New York and New Jersey. The Super Bowl committee will announce its list of official hotels in the coming months, a spokeswoman said. —EMILY LAERMER !! ! ! ! ! ! @>490>> .09?0= :9 >4?0 30,7?3 .7@- :9 >4?0 ;,=6492 &! )& BBB 347?:990BD:=63:?07 .:8 9 / 47?:9 *:=7/B4/0 %(( ) BBB 9D8,==4:??8,=<@4> .:8 9 / :>? :?07> %0>:=?> !,==4:?? 9?0=9,?4:9,7 @>490>> .09?0= :9 >4?0 30,7?3 .7@- :9 >4?0 ;,=6492 &! $&' BBB >30=,?:990BD:=6 .:8 :>? :?07> %0>:=?> &?,=B::/ :?07> ,9/ %0>:=?> @>490>> .09?0= :9 >4?0 30,7?3 .7@- :9 >4?0 ;,=6492 ):=9,/: %0,7?D '=@>? 49/0;09/09?7D 8,9,20/ @>490>> .09?0= :11 >4?0 30,7?3 .7@- :9 >4?0 30,7?3 .7@@>490>> .09?0= :9 >4?0 30,7?3 .7@- #4 ,/( 0 ,1#) #++06)3+' &0A09?3 A0 "0B +:=6 "+ #' ",$$ BBB 3:?07;099 .:8 &# ')$,/" 423?3 A0 "0B +:=6 "+ # %+ BBB ?308471:=/ .:8 9 / 9 / 4232,?0 :?07> /+" 611 #4 ,/( 9/ &? "0B +:=6 "+ &! &) BBB 2=,9/90BD:=6 3D,?? .:8 9 / D,?? D,?? :?07> & %$ BBB B,7/:=190BD:=6 .:8 9 / 47?:9 *:=7/B4/0 @>490>> .09?0= :9 >4?0 30,7?3 .7@- >;, ,,0#3#)1 ,1#) !,/4>:9 A09@0 ,? ,>? ?3 &?=00? 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Table of Contents for the Digital Edition of Crains New York - January 28, 2013

Crains New York - January 28, 2013
In the Boroughs
In the Markets
The Insider
Business People
Opinion
Greg David
Alair Townsend
Report: The Business of Sports
The List
Classifieds
Small Business
For the Record
New York, New York
Source Lunch
Out and About
Snaps

Crains New York - January 28, 2013