NEW YORK CITY TOURISM INDUSTRY BOOSTS NEWARK HOTEL MARKET
Occupancy Rates Up, New Inventory in the Works for New Jersey’s Largest City
Newark, N.J. – January 16, 2012 – (RealEstateRama) — The Newark, N.J., hotel industry is thriving heading into 2012. While the continued evolution of the city’s entertainment, cultural and corporate draws can be credited in part for the strong performance, the real catalyst can be found in New York City’s burgeoning tourism industry.
According to a January 2011 press release from the office of New York City Mayor Michael Bloomberg, in 2010:
· 48.7 million people visited New York City, up 6.8 percent from 2009.
· 39 million of these visitors were from the U.S. and 9.7 million from abroad—both records.
· The hospitality industry added 6,600 jobs across all industry sub-sectors; the industry employs the most people in summer, and July 2010 set an all-time record for total jobs with 323,200.
· 25.7 million room nights were sold, a new record, exceeding the previous high by 2 million room nights.
· Average daily room rates rose to $330 in December 2010, an 8.9 percent increase over 2009.
The mayor recently announced that the city’s hotel inventory will reach 90,000 rooms by the end of 2011. This record number represents a 24 percent increase over the past five years. More than 7,000 additional rooms are in the pipeline.
These numbers all translate to an overall upward trend for New York City’s $31 billion tourism industry, according to a recent press release from Mayor Bloomberg’s office. It reads: “The City is on track to reach a record number of visitors this year…occupancy remained at close to 85 percent, the highest in the nation.” In short, the city is on pace to meet its goal of attracting 50 million annual visitors by 2012.
What does this have to do with Newark? Simply put, New Jersey’s largest city is an outstanding cost alternative to Manhattan. Guests staying at four- and five-star hotels in Newark pay about half of what they would to stay in New York City. Yet they can still get there quickly and easily via an outstanding public transportation network. Newark Penn Station offers 15 minute transit to Manhattan with trains running 24/7. Newark’s strong transit infrastructure also includes a Light Rail line and bus service, as well as Newark Liberty International Airport.
Over the past few years, we have seen an influx of New York City visitors—especially international travelers—staying at our Best Western Robert Treat Hotel (located at 50 Park Place in Newark). While they may initially have been motivated by a recession-based drive toward savings, the trend has continued to gain momentum as the recovery takes hold.
As a result, the Robert Treat Hotel has seen a significant jump in occupancy. Through the end of October, our average occupancy rate was 87.9 percent for 2011—as compared to 81.4 and 86.1 percent year-to-date in 2009 and 2010, respectively. The hotel reached 100 percent occupancy during June, July and August 2011, representing record bookings for our property. Additionally, Smith Travel Research reports that, among hotels considered competitors to the Robert Treat in Newark, average occupancies increased from 78.3 percent, to 81.4 percent to 82.9 percent, year to date in 2009, 2010 and 2011, respectively.
Further illustrating the strength of the Newark hotel market, Courtyard by Marriott broke ground in April for a 150-room hotel—the first new hotel in downtown Newark in 39 years—right outside the Prudential Center Arena. Additionally, Indigo Hotel has proposed a boutique 100-room property just two blocks away.
Obviously, some travelers want to stay in New York, and they will continue to do so. However, others are motivated by economics. Newark clearly is a great choice for that population, and smart hotel operators are working to accommodate its needs. We have intensified our concierge service to offer transportation to the train station. We have New York City maps and brochures available, and we even help guests get tickets to shows and events.
Many of New York tourists staying in Newark also are discovering that there is a lot to do right here. We have world-class venues like Prudential Center, which serves as home to the NJ Devils hockey and Nets basketball teams, and as a venue for countless concerts and productions. The New Jersey Performing Arts Center, the Newark Museum, parks, universities and fine dining are among many additional highlights.
More and more, Newark is becoming a destination. As the Bloomberg Administration continues to invest in the New York City tourism industry and initiate new programs to attract visitors, the hotel industry here will continue to reap the benefits.
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By Miles Berger, chairman and chief executive officer
The Berger Organization
Media Contact:
Evelyn Weiss Francisco: evelyn (at) caryl (dot) com, (201) 796-7788, www.twitter.com/carylcomm
