At a recent luncheon, Hennessey noted that the 1999 exhibited a softening in demand in the Manhattan market, with negative occupancy growth and only moderate rate growth.  The year 2000 looks stable as lodging fundamentals in the New York market remain strong and development is on the rise.

Currently, there are approximately 20 hotels that are under construction or likely to be developed by the fourth quarter of 2000.  Additionally, there are 6 hotels in the planning process and 11 hotels in the proposal stage. 
Trends to watch in the year 2000 include: 

Greenwich Village�s meat packing district becomes hotspot. 

Broadway Management and Madison Equities are in partnership to develop the area�s first luxury hotel, the Greenwich Village Hotel.  Sonnenblick-Goldman Company is arranging the financing for the hotel, which is scheduled to open in 2001.  An additional development project at West and Perry Streets is in the design phase and is slated to include a 15-story condominium unit, a restaurant and a 75-unit hotel.  Andre Balazs (owner of The Mercer in SoHo), the Kimpton Group, and Highgate Holdings have also been scouting the area.

New York suburbs blossom. 

Barriers to entry, such as lack of available land and high costs, have steered hotel developers into the outlying areas of New York City.  Several hotel projects are under development in Jersey City that are expected to be competitive with other downtown Manhattan hotels.  Mack-Cali Realty announced plans to build a 350 guestroom Hyatt Regency on a pier in the Hudson River.  Scheduled completion is in 2002.  Also under construction in Jersey City, proximate to the PATH train and the ferry, is a Courtyard by Marriott.  The Pomeranc Group of New Jersey, which is currently constructing a $25 Million, 12-story, 100 room boutique hotel in SoHo called 60 Thompson, is also building two 200-room hotels, one at LaGuardia Airport and the other at JFK International Airport.  Also at New York�s JFK Airport is a proposed large-scale economic development project which will include a 8.4-mile light rail line.  The train will connect JFK Airport to Howard Beach in Jamaica and is expected to spur additional developments in the area including a new hotel and conference center.  Finally, an urban renewal organization is planning a Doubletree Hotel project for Washington Heights and real estate developer Richard Nicotra is developing a Hilton Hotel at the Staten Island Corporate Park. 

New �entertainment� districts develop. 

The highly publicized E-Walk project in Times Square will begin to take shape in the year 2000.  In addition to Tishman�s Westin Hotel that is slated to open in March of 2002, a Club Hotel by Doubletree and a Sheraton Hotel will open within the next 9 months.  South of Times Square and across from Penn Station, Vornado Realty Trust purchased Planet Hollywood International�s 20 percent stake in the Hotel Pennsylvania.  Vornado is in talks to develop an entertainment district in the surrounding area fashioned after Times Square.  Other areas that are scheduled to be revamped are Govenor�s Island and DUMBO (Down Under the Manhattan Bridge Overpass).  New York City officials have agreed on a proposal for redeveloping Governor�s Island with a conference center and hotel and a master plan has been proposed for DUMBO that includes the River Hotel. 

Founded in 1927, The Hospitality Sales & Marketing Association International (HSMAI) is comprised of over 5,000 sales and marketing professionals worldwide.  The Big Apple Chapter is the organization�s largest chapter, with nearly 500 members representing hotels, both large and small, the New York Convention & Visitors Bureau, and other organization including transportation and tour companies, print media, public relations, advertising agencies, and restaurants.