More than 5K hotel rooms planned since start of 2020, Extell top filer
By Atticus O’Brien-Pappalardo
This report is part of a series of reports looking at development in NYC real estate from January 2020 through May 2021.
Hotel developers have filed 32 new building plans for 5,561 new hotel rooms since the start of 2020, with Gary Barnett’s Extell Development topping the list with 1,604 units filed in three plans. Those plans accounted for more than 2.1 million square feet of new construction.
During the same period, hotel owners filed $375 million in alteration plans to 335 buildings in the city.
PincusCo looked at all hotel (R-1) new building plans filed in the city since the start of 2020. The analysis excluded R-1 plans that called for shelters or dormitories, where it was clearly indicated.
It is important to note that over half of those units came in plans filed in the first four months of 2021, when 16 hotel plans were filed for a total of 3,470 units and 1.3 million square feet of construction. A PincusCo report found that the surge in filings was likely a response to a controversial proposal from Mayor Bill de Blasio and other city representatives which could greatly restrict hotel developments if approved.
Extell Development was responsible for three of the five largest hotel plans, in terms of number of units, since the start of 2020, the analysis found.
Two of Extell’s three hotel plans since the start of 2020 were filed during the above mentioned four month surge, calling for a 670-key, 242,759-square-foot, mixed-use hotel building at 1710 Broadway and a 400-key, 208,962-square-foot mixed-use hotel at 201 West 54th Street in Midtown West. The third plan, pre-filed on November 20, 2020, called for construction of a 534-key, 168,897-square-foot hotel building at 32 West 48th Street, also in Midtown West.
The third largest hotel plans came from Sam Chang’s McSam Hotel Group, on January 11, 2020. The plans called for the construction of a 408-key, 126,558-square-foot hotel at 144-02 135th Avenue in Jamaica.
Atlas Hospitality was behind the fourth largest plans over the period. On April 28, 2021, the developer filed a permit application for construction of a 401-key, 135,363-square-foot hotel building at 711 Seventh Avenue in Times Square, Manhattan. Raj Guru through TSQ Development LLC was the filing representative.
Nehalkumar Gandhi was the most prolific hotel developer by number of buildings over the period. The developer filed plans for five different hotels, for a total of 430 units and 164,078 square feet.
The largest Alternation filing (known as an A2 filing in BIS Web) at a hotel came from The Roe Corporation at 267 Broadway in Tribeca. The developer filed new building plans back in December of 2016 for a 747-foot tall, 49-story, 236,339-square-foot hotel at the property with 279 dwelling units. Recent reports indicate that the plans have changed, however, and the developer now seeks to construct a mixed-use building with 37 residential units above an 80-room boutique hotel.
The Alteration plans, filed with DOB Now under the job number M00298069 on April 22, 2020, called for a $51 million installation of a new HVAC system at the building.
Earlier this year, Ralph Braha through the entity 267 Property Corp. as borrower signed a loan agreement with lender Signature Bank valued at $25 million at the property.
In total there were $375 million of Alteration and Alteration-CO plans filed at hotel buildings from the start of 2020. It is important to note that some of the R-1 filings were likely for shelter or dormitory buildings, which share the same occupancy code as hotels. Because of this, the monetary value may be slightly inflated. However, shelters and dormitory buildings were removed when it was apparent.
Below are the five largest Alteration filings over the time period examined, all of which were for Manhattan hotels.
The vast majority of the total rehab plans were Alteration plans. There were very few Alteration-CO filings (known as A1 filings in BIS Web) at hotels during the time period examined, in fact, the analysis found only four jobs above $1 million.
Manhattan was easily the most popular borough for new hotel developments over the timeframe examined.
