Lower East Side Flooded with Influx of 2,000 New Hotel Rooms
Hotels continue to kill the Lower East Side, purging the very attraction and aesthetic the lodges market. Case in point, the tiny zone of Hell Square itself boasts seven hotels. Extrapolate that trend to the rest of the neighborhood, and the problem truly comes into focus.
In the city’s recent Hotel Development Report (embedded below), a total of 48 hotels have opened in Manhattan since 2015, with 71 more in the pipeline. Here on the Lower East Side, however, 6 new hotels debuted in that timeframe and another 6 are on the way. In total, that equates to more than 2,000 new rooms in a four-year period (2015-2019).
Here are the relevant stats from the report…
Hotel openings since 2015:
The Allen Hotel—45 rooms
88 Allen Street
Projected opening: October 2017
Sun Sun Property Investment is developing this new boutique hotel on the corner of Allen and Broome Streets in the Lower East Side.
Hotel Indigo (aka Orchard Hell Building) – 293 rooms
171 Ludlow Street near Houston Street
Orchard Street Hotel – 52 rooms
163 Orchard Street at Stanton Street
Public, an Ian Schrager hotel—370 Rooms
215 Chrystie Street at Houston
Opened: June 2017
Ian Schrager launched his latest hotel brand in New York City in the exciting arts, entertainment and dining center of the Lower East Side. The multi-use tower designed by Herzog & de Meuron rises 28 stories above the street and includes condominiums in the glass walled upper floors, along with gardens, inviting public spaces and dining options.
Hotel 50 Bowery, a Joie de Vivre Hotel—229 rooms
50 Bowery Opened: May 2017
Two Roads Hospitality developed this upscale, lifestyle property which is branded under Joie de Vivre. In keeping with the overall brand integrity, the hotel celebrates the local culture and authenticity of its neighborhood.
SAGO Hotel— 20 Rooms
120 Allen Street Opened: February 2016
Brings a new boutique property with a local feel to the Lower East Side.
Hotels in the pipeline:
CitizenM Hotel—315 rooms
Projected opening: early 2018 A second CitizenM Hotel is planned for the arts district in Lower Manhattan.
Ace Hotel – 200 rooms
Projected opening: spring 2018
A 14-story new Ace Hotel is being developed at a converted building site on the Bowery on the Lower East Side. Raising the building by 4 floors and adding retail space and a restaurant along with a roof terrace and bar, this will be another Ace Hotel for NYC.
Unnamed Hotel ─46 hotel rooms with 21 apartments
Projected opening: TBD 2018
A new commercial, retail, residential and hotel property is being developed along the vibrant stretch of the Bowery that connects Chinatown, NoLiTa, and Little Italy in Lower Manhattan.
The Allen—105 rooms
139 Orchard Street
Projected opening: 2018
A 16-story hotel is slated to join the properties in the Lower East Side of Manhattan.
Jarmulowsky Bank Hotel – 97 rooms (not in the report)
9 Orchard Street
Moxy Hotel – 285 rooms (not in the report)
112 East 11th Street
However, the findings come at a time when the city’s hotel industry is struggling. Supply is flooded and Airbnb is further cutting into the bottom line. The report alludes to the trend – “Many hotels in the pipeline are competing for the City’s growing leisure visitor base. The Moxy in Times Square (a 600-room hotel opening in September, featuring a carousel and rooftop mini-golf course) and the Hoxton in Williamsburg serving as excellent examples of the opportunities arising.”