The New York lodging sector is among the highest performing markets in the world. Hotel occupancy among upper-tier hotels went nearly uninterrupted during the economic downturn, and, as a result, RevPAR increases have been driven mostly by rate growth, says Jones Lang LaSalle (JLL). The robust performance of this gateway market results in continued investment by both domestic and off-shore buyers. While the market faces a supply pipeline of 15,000 new rooms through 2017, resulting in annual increases above the long-term average, investors remain confident in the strength of the market as they continue to take positions in New York’s lodging sector, the company states.
According to JLL’s outlook, hotel investment in New York is being driven by pent up demand, the availability of high-quality product, and access to capital. While supply is set to increase faster than the long-term average from 2014–2017, demand increases are expected to mirror supply growth in that period. JLL expects hotel values to see continued growth as investors from around the world pursue the New York lodging sector.
Watch the video above for JLL’s New York hotel market overview. The infographic below details market fundamentals, as well as transaction, financing and supply activities.
