Activity Slumps in NYC Hospitality Sector in 2012
NEW YORK, Feb. 20, 2013 /PRNewswire/ -- The real estate market saw the NYC hotel industry falling sharply last year. The PropertyShark report indicates a 30% decrease in the number of transactions in the hotel industry in 2012, with only 31 deals closed for all quarters.
The sales volume and median price fell even more markedly since 2011, the sales volume going down by 58%, with only $1.6 billion in closed sales, as opposed to 2011's $3.8 billion.
Median Sale Prices See Huge Drop
The significant drops in median sale price and the median sale price per room also reflect the decline in the sector of hospitality in 2012. The median sale price is 78% down from last year, reaching $10 million. The median sale price per room dropped almost $100,000, from $287,000 in 2011 to $194,000 last year, a 32% decrease.
Hotel Prices Per Room Double in Brooklyn
PropertyShark statistics show that the median sale prices per room in Brooklyn reached a record value of $190,000, more than double that of 2011. Even if Brooklyn almost equaled prices in Manhattan, Manhattan still leads the activity for this segment with hotel rooms selling for $200,000 on average.
This is no small feat, though far from the values registered last year, when hotel rooms in this borough went for almost $384,000. Like Manhattan, Queens registered a significant drop in the median sale price per room, falling from $75,000 in 2011 to $38,000 in 2012.
Therefore, as the data from the report shows, New York City hotel activity points to a general decline, with Brooklyn alone on the increase.
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Data and Market Analyst