Today’s New York Sun examines the potential side-effects of the city’s ongoing hotel boom.
Between 13,000 to 18,000 new and renovated rooms are expected in the coming years, which sounds great for consumers but some proprietors aren’t so stoked.
Hotelier Richard Born, who is quoted at length, foresees a lot of doom and gloom with the boom, declaring, “There will be a lot of pain.”
“I predict that with a rapid rise in inventory that will result in perhaps even a subtle change in occupancy, we will see an enormous plunge in room rates,” he said. “Our rates have risen 100% over the past four years. I would not be surprised if we return to 2003 average daily rate levels. This will translate to a potential 50% decrease in projected gross revenues and a near total wipeout of operating profits.”