Long Island City Leads Hotel Development Boom In The Outer Boroughs
With Manhattan containing a mammoth number of hotel rooms, developers have looked to the outer boroughs for development opportunities.
A study by The Real Deal found that 111 hotels have been planned since 2010 in the five busiest outer borough neighborhoods for hotel development, with a whopping 45 of those in Long Island City. Jamaica, Queens, is in second place with 26 hotels planned over that period.
Long Island City's proximity to Manhattan has contributed to its popularity, though its lower price has lent itself mostly to brands below the luxury tier that concentrates in Manhattan. The largest planned project, at 1,260 rooms, is a branch of the bargain chain Tokyo Inn at 24-09 Jackson Ave. above the Court Square subway stop.
Jamaica's popularity can be tied directly to its proximity to JFK Airport, Queens-based Century Development founder Charles Xu told The Real Deal, with most hotels in the area marketing to airport travelers. In both Long Island City and Jamaica, occupancy rates and revenue per available room have been on the rise, giving credence to the development boom — though Xu is concerned that Long Island City will soon be overbuilt.
“If I had the money and the same lot, I’d put it in Williamsburg,” Xu told TRD. “I’d put it in Downtown Brooklyn rather than Long Island City.”
Williamsburg and Sunset Park in Brooklyn each have had 14 hotels planned since 2010, good for a tie for third place in the outer boroughs. Flushing rounded out the top five with 12 planned hotels.
You can learn more about Long Island City and its hotel market Dec. 5 at The Factory on 47th Avenue for Bisnow's Long Island City State of the Market event.
