(Mark your calendars: RealShare Hotels, September 15 at the New York Hilton)
NEW YORK CITY-In one of the biggest hotel developments in Manhattan in recent years, Marriott International Inc. and ownership group Granite Broadway Development signed a franchise agreement to develop a 68-story tower at 1717 Broadway with over 600 hotel rooms, the New York Times reported today. The project, which will be managed by Interstate Hotels and Resorts, will include a 378-key Courtyard by Marriott and a 261-room Residence Inn by Marriott at 54th Street. It will open in late 2013.
The Times says that the Courtyard and Residence Inn Manhattan/Central Park development has been in the works for over a decade, and will be the tallest stand-alone hotel building without office or residential space in New York upon completion. “This project is a long time coming, and we believe that these two brands, along with the leased retail shops and restaurant, will offer needed services in this part of Manhattan,” says Ronnie Gross, vice president of Granite Broadway Development, in a statement. The tower will rise 752 feet from street level. “The building will be absolutely stunning, and the hotels are the right lodging brands for this wonderful location.”
According to Real Capital Analytics, Granite’s owner Harry Gross acquired the land for redevelopment at 1715-1717 Broadway for $12 million in June 2001 from previous owner, Lloyd Goldman of BLDG Management. The Times also notes that the Gross family owns three Marriott hotels in New York, including the Courtyard New York JFK Airport in Jamaica, NY; the Courtyard New York Manhattan at Times Square South; and the Residence Inn Manhattan in Times Square.
The new hotels will share a main entrance and arrival lobby on 54th Street, with public areas for the Residence Inn on the third floor and for the Courtyard on the fourth floor, according to a statement from Marriott. Guest rooms for the Courtyard will located on floors six through 32 and for Residence Inn on floors 36 through 64, with separate elevator banks to serve the guestrooms and public areas for each brand.
In addition to ground floor retail space, a leased restaurant will occupy the second floor, and a fifth floor lounge and terrace with outdoor seating will overlook Broadway. Both hotels will share a fitness center on the 34th floor.
From a market perspective, industry leaders told GlobeSt.com during its “New Era For Hotel Opportunities” webinar that trophy markets like New York City, Boston and Washington, DC are remaining competitive in the hotel space, but much of the success of the sector depends on consumer confidence. “The leisure traveler has stayed consistent, but now there are some world politics going on,” said David Pepper, senior vice president of global development for Choice Hotels International. “If gas prices continue to go back up, that’s where the leisure traveler is really going to be affected.”
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