The Ritz Carlton hotel in Manhattan will open next week, marking Marriott's bet on the surge in luxury travel and the return of business travelers.
There are four food and beverage outlets and 10,000 square feet of meeting space. Marriott is uniquely positioned to take care of the pivot from leisure travel to business travel according to Tony Capuano.
New York City is seeing a resurgence in tourists, which coincides with the opening of the Ritz Carlton. When New York became one of the first places to be affected by the Pandemic, tourism in the city dried up. Travelers are returning and more developers are signing new deals.
New York had a great year in 2019. You had a lot of people visit New York. According to Capuano, there is a sense that we will get back to about 85% of that.
New York City is the third-strongest city in the country in terms of hotel room availability. The top two markets are Portland, Maine, and San Diego.
The past two years have seen beach destinations win out.
People didn't go to downtown areas. They didn't want to be around a lot of other people due to Covid, but that has changed and they're ready for the city vacation.
The per-night price of a hotel room has gone up. The average cost to stay in a New York City hotel is nearly $300 a night, up 20% from last year.
Capuano said that the higher rates are a sign that hotels are in control of their pricing power.
If we deliver on that service, it's sustainable. One of the biggest challenges the travel and tourism sector faces is labor. We do everything we can to make sure our hotels are staffed. We have to deliver on service if we are going to continue to experience this strong pricing power.
A number of hotels have opened in New York this year. There are more than 60 projects in the works with opening dates in the future.
Freitag said that it's the highest one in the country for any market.
Supply chain delays continue to be a problem for hotel development. Four years ago, the Ritz Carlton broke ground, but is only now opening because of the Pandemic and ongoing supply constraints.
There are challenges related to supply chain issues that make it difficult to open.
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