Major companies have started their moves to the far west side of Manhattan, and luxury hotels are not too far behind.
Brookfield Property Partners has already signed up Pendry Hotels to manage a project at Manhattan West with 164 rooms, according to Bloomberg. It is scheduled to open in 2021, at which point companies including Amazon and Wells Fargo will be its neighbors.
Revenue per available room has gone down in each of the last three years in New York’s hotel market as new supply starts to weigh on growth. Several recent projects in places like Hudson Yards and Manhattan West are geared toward the overflow of travelers from Times Square, but the high-end companies heading to the neighborhood helps justify high-end hotels opening as well.
Hotels besides Pendry arriving nearby include an Equinox Hotel at Hudson Yards, the High Line Hotel and Pestana CR7, which is co-branded with soccer celebrity Cristiano Ronaldo.
“Luxury hotels tend to follow where our guests go,” Pendry Hotels creative director Michael Fuerstman said to Bloomberg. “Now there’s essentially a neighborhood of premium shopping and restaurants and great retail and experience-driven stuff. I think we’re on the front wave of what will be some more development.” [Bloomberg] – Eddie Small