Manhattan average price per key to eclipse US$600,000: CBRE

CBRE Group finds continued strength in New York City’s hotel investment sales, according to its spring 2013 Manhattan Hotel Real Estate Market Snapshot.

“Manhattan lodging performance continues to increase, with 9% RevPAR growth in Q1 2013 compared to Q1 2012,” said Bradley Burwell, vice president, CBRE Hotels. “Solid hotel metrics, combined with the most fluid capital markets since 2007, will likely result in nearly US$3 billion Manhattan hotel investment sales in 2013 and the average price per room of those sales is expected to break US$600,000 for the first time on record.”

The report also found a growing trend toward the building of high-quality limited-service hotels, as opposed to full-service hotels. In Q1 2013, the gap between high-quality limited-service hotels and full-service hotels was less than 20%, closing from nearly 25% in Q1 2009. This trend is expected to continue as the majority of newly constructed, high-quality hotels in Manhattan are limited-service.