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Marriott opens a new Ritz-Carlton in Manhattan as New York tourists skyrocket

The Ritz-Carlton in the No Mad district of New York City.

Seama Modi | CNBC

Marriott Next week we will open a fashionable new Ritz-Carlton Hotel in Manhattan, hoping for a surge in luxury travel and the return of business travelers this fall.

“We have 10,000 square feet of conference space, 7,000 square feet of spa, and four eateries. I think we’re in a unique position to handle that pivot, from leisure to business trips,” said Tony, CEO of Marriott. Capuano told CNBC. on tuesday.

The 106th Ritz-Carlton debut comes when New York City sees a resurgence of tourists. When New York became one of the first epicenters of the outbreak, the city saw almost tourist depletion early in the pandemic. Today, travelers are flocking and more developers are signing new deals.

“2019 was the best year in New York City’s history. New York had more than 66 million visitors, and I feel we’ll be back to about 85% this year,” Capuano said. ..

According to hospitality analysis provider STR, New York City’s hotel occupancy is currently the third highest in the country at 83%. The top two markets are Portland, Maine and San Diego, California, with 85% and 84% occupancy, respectively.

The New York rebound shows a strong reversal from the last two years when beach destinations have won.

“People were just out of downtown. I didn’t want to be around many other people because of Covid … but that turned around and I thought we were ready for a vacation in the city. “Masu,” said Jan Frietag, a citizen of the Costa Group. Director of Hospitality Analysis.

Prices per night skyrocketed as hotel demand recovered and inflation remained high for 40 years. According to STR, the average cost to check in at a hotel in New York City is about $ 300 per night, up 20% from 2019 levels.

Capuano said the hotel is demonstrating its pricing power as long as it can navigate the difficult labor market.

“If we provide that service, I think it’s sustainable. Obviously, one of the major challenges facing the entire travel and tourism sector is labor. We staff our hotels and teams. We continue to do our best to ensure that is in place. If we continue to experience this strong pricing power, we need to serve it, ”says Capuano.

The Ritz-Carlton has joined 11 other hotels that opened in New York this year. According to STR, 60 more projects are underway and have a planned opening date in 2022.

“This is the tallest pipeline in the country in any market,” said Freitag.

However, hotel development continues to stumble due to supply chain delays. The Ritz-Carlton started construction four years ago and is now opening its doors due to delayed construction pandemics and ongoing supply constraints.

“It’s really hard to open when you want to, because of the ongoing challenges associated with supply chain issues,” Freitag said.

Correction: This story has been updated to reflect that NoMad’s Ritz-Carlton is Marriott’s 106th Ritz-Carlton Hotel.

Marriott opens a new Ritz-Carlton in Manhattan as New York tourists skyrocket

Source link Marriott opens a new Ritz-Carlton in Manhattan as New York tourists skyrocket

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