The Ritz-Carlton within the NoMad neighborhood of Latest York City.
Seema Mody | CNBC
Marriott next week will open a swanky recent Ritz Carlton hotel in Manhattan, marking a bet on the surge in luxury travel and the hopeful return of business travelers this fall.
“It’s got 10,000 square feet of meeting space, a 7,000-square-foot spa, and 4 food and beverage outlets. I believe it’s uniquely positioned to maintain that pivot from leisure travel to business travel,” Marriott CEO Tony Capuano told CNBC on Tuesday.
The debut of the 106th Ritz Carlton comes as Latest York City is seeing a resurgence in tourists. Town saw tourism all but dry up within the early days of the pandemic when Latest York became one among the primary epicenters of the outbreak. Now travelers are flocking back, and more developers are signing recent deals.
“2019 was the perfect yr in Latest York’s history. You had over 66 million visitors to Latest York. There is a sense we’ll get back to about 85% of that this yr,” said Capuano.
Latest York City hotel occupancy rates are currently the country’s third-strongest, at 83%, in accordance with STR, a provider of hospitality analytics. The highest two markets are Portland, Maine, and San Diego, California, with 85% and 84% occupancy levels, respectively.
Latest York’s rebound marks a powerful reversal from the past two years when beach destinations won out.
“People just stayed away from downtown areas. They didn’t wish to be around numerous other people on account of Covid … but that has reversed and I believe we’re ready for the town vacation,” said Jan Frietag, Costar Group’s national director for hospitality analytics.
As hotel demand rebounds and inflation hovers at a four-decade high, per-night pricing has skyrocketed. The common cost to envision in to a hotel in Latest York City is sort of $300 an evening, up 20% from 2019 levels, in accordance with STR.
Capuano said the upper rates are an indication that hotels are commanding pricing power — as long as they’ll navigate a difficult labor market.
“I believe it’s sustainable if we deliver on that service. Obviously, one among the massive challenges that the complete travel and tourism sector faces is a labor challenge. We proceed to do all the pieces in our power to be sure our hotels are staffed, our teams are trained. If we will proceed to experience this strong pricing power, we have to deliver on service,” Capuano said.
The Ritz Carlton joins 11 other hotels which have opened in Latest York this yr. One other 60 projects are within the pipeline with scheduled opening dates for 2022, in accordance with STR.
“That’s the very best pipeline within the country for any market,” Freitag said.
But hotel development continues to get tripped up by supply chain delays. The Ritz Carlton broke ground 4 years ago and is just now opening its doors, due partially to the pandemic and ongoing supply constraints that slowed down construction.
“It’s really hard to open when you ought to open on account of the continuing challenges related to provide chain issues,” Freitag said.
Correction: This story has been updated to reflect that the Ritz Carlton in NoMad is Marriott’s 106th Ritz Carlton hotel.