New York is one of the top global destinations for business and leisure travelers. And the city’s hotel sector has been booming for years. However, too many hotel rooms coming online makes the business outlook gloomy, according to experts.
New York has been an attractive destination for hotel investors and developers in recent years. The city’s hotel room inventory has increased by 60 percent in the last 10 years and currently stands at 115,000.
There will be 31,000 new rooms coming online in New York in the next few years according to Michael Meyer, president of F&T Group. This implies a more than 25 percent growth in room inventory.
In addition to the oversupply of hotel rooms, a strong dollar, and a weak global economy are expected to cause cutbacks on leisure and travel spending.
