In a recent article in The New York Sun, experts are quoted projecting a glut in the number of new hotel rooms coming onto the New York market in the next few years. One of the Chelsea Hotel overlords, Richard Born, foresees doom and gloom for the hospitality industry in New York City. “There will be a lot of pain…” Born said. “…I am very worried about the fate of the hotel industry over the next two to four years…” He predicts “a potential 50% decrease in projected gross revenues and a near total wipeout of operating profits.” Born thinks that visitation to the city will soon level off and that “…we will see an enormous plunge in room rates.” If Born really believes this to be case, then why is BD Hotels trying to create more transient rooms here at the Chelsea Hotel? Perhaps a better solution would be to take in more permanent tenants.
Besides that, aren’t Richard Born and Ira Drukier partially responsible for the glut? How many hotels have they developed in Manhattan recently? I guess they don’t mind a little pain.
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