Total $0.00


NEW YORK, April 25, 2018 -- Leading hotel industry analyst LW Hospitality Advisors has announced the findings of a comprehensive M1 Zoning Hotel Market Analysis completed in advance the City's decision whether to certify the Proposed Action as early as next week.  The report identifies the potential unintended economic and social impacts for New York City if the proposed special permit to limit new hotel development in M1 zoning districts is adopted by the New York City Department of City Planning (DCP).

As indicated by one of the report's authors, Robert Van Laer of LW Hospitality Advisors, if the special permit is granted, New York City's economy would suffer by being denied the following sources of revenue generated by projected hotel development between now and 2028:

  • An additional $55.5 billion in economic impact
  • An additional $37.1 billion in direct visitor spending
  • An additional $25.6 billion in wages and salaries
  • An additional 202,409 jobs
  • An additional $11.7 billion, including $4.24 billion in local taxes generated by tourism
  • An additional household tax savings of $1,290 resulting from the tourism industry

"The hotel and tourism industries are a vital part of the City's economy, generating tens of thousands of jobs, $2 billion dollars in tax revenue, and over $64 billion in economic impact in 2016," said the study's lead author, Evan Weiss, LW Hospitality Advisors. "We believe that the current action plan by the City to adopt the special permit for new hotel development in M1 zones is misguided and will reduce the potential economic and social benefits to the City in the long term."

In the past decade, New York City has substantially benefited from the growth of its tourism industry, which has spurred development of new hotels throughout the five boroughs. During this time, there has been increased hotel development in M1 zoning districts, particularly outside of Manhattan. Reportedly, 20 percent of new hotel rooms built between 2008 and 2017 in Manhattan were located in M1 zones, compared to 37 percent outside Manhattan. Despite the significant supply increases over the past several years, hotel demand has kept pace, and in most instances, exceeded new supply, causing occupancy to increase and generating increased economic activity, jobs, and tax revenues for New York City annually.

To illustrate in practical and tangible terms what the special permit would cost the city, the report details a range of benefits for residents that would be supported by the City's projected local tax revenue gain of $4.24 billion from tourism over the next 10 years:

  • 47,714 teachers
  • 180,575 students
  • 497,743 child care vouchers
  • 59,004 families housed in shelters
  • 26,026 police officers and firemen
  • 3,506 billion gallons of wastewater treated
  • 4,900,797 job placements through the Workforce1 Career Centers

"There should be more hotels in M1 zones, not fewer," said Gene Kaufman, Principal of Gene Kaufman Architect, who commissioned the report. "My business interests in this case align with what I truly believe is the right thing for the City. Our goal in conducting this study was to demonstrate the significant value the hotel industry brings to New York, and potentially impact the outcome of the pending decision regarding the special permit."

The full report can be found here: LWHA M1 Zoning Hotel Market Analysis

About LW Hospitality Advisors

LW Hospitality Advisors® (LWHA®) provides a myriad of services focused exclusively on hospitality and gaming real estate worldwide. Representative property types include hotels, resorts, gaming properties, and conference centers. LWHA® works globally with corporate, institutional, and individual clients, as well as with municipalities and governmental agencies on all facets of hospitality real estate. 

Contact: Daniel Lesser / 212.300.6684 X 101

Related News

Sunseeker Resorts Breaks Ground on Charlotte Harbor Development in Punta Gorda, Florida

The Kessler Collection Celebrates Topping Out of Grand Bohemian Hotel Charlotte

On Air Soon: Construction Underway for REVERB by Hard Rock™ Hotel Downtown Atlanta Opening February 2020

Margaritaville Celebrates Groundbreaking of New Hotel on Jacksonville Beach, Florida

HVS Market Pulse: Detroit, MI

Hilton Signs With Natura Development II N.V. to Develop Embassy Suites by Hilton Hotel in Aruba

Times Square Hotel Goes to Auction on RealINSIGHT Marketplace on April 8th

Kimpton Hotels & Restaurants to Debut in Montana With Adaptive Reuse Project in Bozeman

Welcome Group Plans Late Spring Opening of AC Hotel Los Angeles South Bay

Key International Breaks Ground on AC Hotel by Marriott in Fort Lauderdale Beach, Florida

Akara Partners Completes Home2 Suites by Hilton Chicago River North

Midas Hospitality Opens Newly-Built 107-Room Home2 Suites by Hilton in Brooklyn Park, MN

Country Inn & Suites by Radisson Opens a Refreshed Hotel in New Orleans, Louisiana

Owned and Managed by Baywood Hotels, Residence Inn by Marriott Opens in Lubbock, Texas

Standard Hotels and Bunkhouse Group Share Global Growth Pipeline of Fifteen New Hotel Projects

UBM Development AG and IHG Sign Agreement for First voco™ Hotel in the Netherlands

Hesperia Hotels & Resorts to Introduce the Hyatt Regency Brand to Spain with Two Rebranded Properties

Hotel Equities Tapped by APX Hotels to Manage Eight Hotel Portfolio in Alberta, Canada

HP Patel, President of Krish Hospitality, Opens First GLō by Best Western in Asheville, NC

Owned by Sunny Investment Properties LLC & Development, the Residence Inn Tulsa Midtown Opens

All News »

Please login or register to post a comment.