In 2008, 14 new hotels entered the Manhattan market, adding 2,195 guestrooms to the market’s inventory as presented in the table below. We note that a few hotels closed for renovations in the same year, including the 132-room Surrey Hotel and the 200-room Pierre Hotel, as well as the Morgans Hotel, which was closed for a six-month renovation. We also note the reopening of the Plaza Hotel.

Name of the Hotel	Room Count	Opening Date	Type	Neighborhood
Holiday Inn NYC Manhattan Sixth Avenue	226	Jun 2008	Midscale	Midtown West
Hampton Inn New York Empire State Building	146	Oct 2008	Midscale	Midtown East
The Thompson Lower East Side	141	Jul 2008	Boutique	Lower Manhattan
Cooper Square Hotel	145	Dec 2008	Boutique	SoHo/Lower Manhattan
Wyndham Garden Hotel Manhattan Chelsea West	124	Nov 2008	Midscale	Midtown West
Ascend Collection The Gem Hotel Chelsea	81	Nov 2008	Midscale	Midtown West
The Greenwich Hotel	88	Apr 2008	Boutique	SoHo/Lower Manhattan
Hilton Garden Inn New York City Tribeca	151	Dec 2008	Midscale	SoHo/Lower Manhattan
Best Western Bowery Hanbee Hotel	99	Apr 2008	Midscale	Lower Manhattan
Hampton Inn Manhattan SoHo	160	Sep 2008	Midscale	SoHo/Lower Manhattan
Standard Hotel New York	347	Dec 2008	Boutique	SoHo/Lower Manhattan
Four Points Manhattan SoHo Village	150	Sep 2008	Midscale	SoHo/Lower Manhattan
Wyndham Garden Hotel Midtown Convention Center	224	Nov 2008	Midscale	Midtown West
Hotel Reserve	113	Dec 2008	Midscale	Downtown/Financial District
Total	2,195

PROPOSED HOTELS

The following table sets forth the number of new rooms under construction that are anticipated to become available from 2009 through 2011.

Project	Location	Type	No. of Rooms	Anticipated Opening	Developer	Under Construction
Upper East Side
The Mark	25 East 77th Street	Luxury	118	Mid 2009	Izak Senbahar & Simon Elias	Yes
	The Mark will be converted into 51 co-op units and 100 guestrooms and suites.
Upper West Side
aloft	2296-2308 Frederick Douglass Boulevard	Boutique	124	Jun 2010	Capital Dreams LLC	Yes
Midtown West
The Vu Hotel	653 West 11th Avenue	Boutique	222	Fall 2009	Horizen Global	Yes
	In addition to guestrooms, the Vu will contain an 1,800-square-foot, glass-enclosed bar providing 360-degree views and a swimming pool and whirlpool. This lodging facility will be managed by Kimpton Hotels.
Fairfield Inn Times Square	330 West 40th Street (b/w 8th and 9th Ave.)	Mid-scale	244	Mar 2009	The Lam Group	Open
	Located adjacent to the Four Points on West 40th Street. The hotel will feature a rooftop lounge and bar, which will be shared with the Four Points by Sheraton.
Four Points Times Square	326 West 40th Street (between 8th and 9th Ave.)	Mid-scale	244	Mid 2009	The Lam Group	Yes
	Located adjacent to the 244-room Fairfield Inn Times Square on West 40th Street. The hotel will feature a rooftop lounge and bar, which will be shared with the Fairfield Inn.
Candlewood Suites	339 West 39th Street	Extended-stay	183	Mid 2009	McSam Hotel Group	Yes
Holiday Inn Express	343 West 39th Street	Economy	210	Mid 2009	McSam Hotel Group	Yes
Hampton Inn	337 West 39th Street	Mid-scale	186	Mid 2009	McSam Hotel Group	Yes
Hilton Garden Inn	63 West 35th Street	Mid-scale	296	Mar 2009	Brack Capital Real Estate	Open
Staybridge Suites	334 West 40th Street	Extended-stay	310	Mid 2009	Mehta Family, LLC	Yes
Clarion	342-344 West 40th Street	Economy	155	Mid 2009	Greenway Realty Holdings	Yes
DoubleTree Chelsea	128 West 29th Street	Full-service	241	Mid 2009	McSam Hotel Group	Yes
Fairfield Inn	21-23 West 37th Street	Mid-scale	92	Mid 2009	Lam Generation	Yes
Ace Hotel	1186 Broadway (29th Street)	Boutique	280	Mid 2009	GFI Development Co.	Yes
The NoMad Hotel	1170 Broadway (28th Street)	Boutique	171	Fall 2009	GFI Development Co.	Yes
Gem Hotel Chelsea	300 West 22nd Street	Mid-scale	81	Early 2009	The ICON Group	Open
Hotel Indigo	127 West 28th Street	Boutique	122	Mid 2009	Fortuna Realty Group	Yes
	Property owner Morris Moinian and his Fortuna Realty Group are constructing the first Indigo-branded hotel in Manhattan. The 20-story structure is expected to cost roundly $50 million and will be a mid-scale boutique hotel.
The Strand Hotel	33 West 37th Street	Boutique	177	Fall 2009	Don Glassie	Yes
Wyndham	152-158 West 26th Street	Full-service	280	Oct 2009	Flintlock Construction Services, LLC	Yes
Fairfield Inn Chelsea	114-116 West 28th Street	Mid-scale	112	Feb 2010	Midtown West Hotel	Yes
The Chatwal	44th Street (b/w 6th and 7th Avenue)	Luxury	88	Early 2010	Hampshire Hotels & Resorts	Yes
	In addition to guestrooms, the Chatwal Hotel will contain 6,000 square feet of meeting space as well as an upscale restaurant from Lotus Partners, a business center, and a health club.
element	311 West 39th Street	Extended-stay	411	Fall 2010	McSam Hotel Group	Yes
Hyatt Place	52 West 36th Street	Mid-scale	188	Fall 2010	McSam Hotel Group	Yes
Hotel Eventi (Kimpton Hotels)	839 Avenue of the Americas	Boutique	287	Early 2010	J.D. Carlisle Development Corp.	Yes
InterContinental Times Square	44th Street	Full-service	613	Early 2011	InterContinental Hotels Group	Yes
Midtown East
Lexington House Hotel	517 Lexington Avenue	Extended-stay	116	Late 2009	Hersha Construction Group/Hunter Roberts	Yes
	Hunter Roberts Construction Group is currently providing Construction Management services to this 80,000 square foot, 25-story structure located in Midtown Manhattan. This hotel will feature a restaurant, a fitness, outdoor terraces, and 116 guest rooms.
Andaz by Hyatt	485 Fifth Avenue (b/w 41st & 42nd Streets)	Boutique	167	Early 2010	Hyatt Hotels & Resorts	Yes
The Setai	400 Fifth Avenue	Luxury	214	Mid 2011	The Setai Group	Yes
Lower Manhattan
Hilton Garden Inn	6 York Street	Mid-scale	150	Jan 2009	McSam Hotel Group	Open
The Standard	848 Washington Street (West 13th Street)	Boutique	344	Jan 2009	André Balazs Properties	Partial Opening
	This lodging facility was developed by Hotels AB (André Balazs) and is the fourth Standard hotel in the U.S. The property will feature extensive food and beverage facilities, including a rooftop lounge, as well as meeting and event space. Soft opening occurred in January 2009 and full opening is expected in June 2009.
Smyth TriBeCa	85 West Broadway	Boutique	100	Jan 2009	Thompson Hotels/Pomeranc Group, LLC	Partial Opening
Cooper Square Hotel	25 Cooper Square (Bowery)	Boutique	145	Jan 2009	Peck Moss Hotel Group	Partial Opening
Comfort Inn	61-63 Chrystie Street	Mid-scale	60	Mar 2009	BTW Hotels, LLC	Open
Holiday Inn Express	126 Water Street	Economy	112	Mid 2009	McSam Hotel Group	Yes
Crosby Hotel	79-85 Crosby Street	Boutique	86	Sep 2009	Firmdale Hotels London	Yes
Trump Hotel & Tower SoHo	246 Spring Street	Luxury	391	Sep 2009	Sapir & Bayrock Group	Yes
Hotel Reserve	20 Maiden Lane	Mid-scale	115	Early 2009	McSam Hotel Group	Partial Opening
Andaz by Hyatt	75 Wall Street	Boutique	250	Summer 2009	Hakimian Group	Yes
	The 42-story building was built in 1986 and will be converted to a luxury hotel containing 250 guestrooms in the lower portion of the building and 350 luxury condominiums on the upper 24 floors. The building will be redesigned by David Rockwell. The lower floors will include meeting space, a restaurant located off Water Street, and a bar.
Sheraton	370 Canal Street	Full-service	368	Nov 2009	McSam Hotel Group	Yes
The Nolitan	153 Elizabeth Street/40 Kenmare	Boutique	60	Jan 2010	Veracity Development	Yes
Courtyard	179 Varick Street	Mid-scale	122	Jul 2010	Ocean King LLC	Yes
Grand Street Hotel	23 Grand Street	Boutique	114	Early 2010	Brack Capital Real Estate	Yes
	The developer, Brack Capital Real Estate, is planning to build a 17-story rectangular glass tower on Grand Street. In addition to guestrooms, the hotel will feature two restaurants and bar, a lobby lounge, a rooftop bar, a business center, a fitness room, and a rooftop swimming pool.
Mondrian	9 Crosby Street	Boutique	274	Early 2010	Cape Advisors, Inc.	Yes
	Cape Advisors, Inc. is converting an existing building in Soho and adding 14 floors to the existing 12 levels. The property, which will feature a restaurant, two bars, a rooftop bar, and ±5,400 square feet of meeting space, will be managed by Morgans Hotel Group.
W New York – Downtown & Residences	123 Washington Street	Boutique	217	Feb 2010	Moinian Group	Yes
	The mixed-use property will consist of 222 condos and 217 guestrooms. Of the 222 condos, 55 will be studios, 125 will be 1 Br's, and 42 will be 2Br's. A total of 64 condos will come furnished. Designed by Gwathmey Siegel & Associates Architects, the hotel will offer meeting rooms, a spa, and a restaurant. The top floor will feature a garden for the residents. The W New York – Downtown Hotel & Residences will be the first W residential development in Manhattan. It will be the sixth W in New York City.
DoubleTree	8 Stone Street	Full-service	410	Early 2010	McSam Hotel Group	Yes
Club Quarters Hotel	130 Cedar Street	Full-service	200	Early 2010	Masterworks Development Company	Yes
	The hotel will be a semi-private hotel primarily for member use but occasionally available to the public.
Habita Hotel	West 27th Street (High Line)	Boutique	56	Mid 2010	Black House Development	Yes
The Dream Downtown	346 West 17th Street (Covenant House)	Boutique	316	Late 2010	Hampshire Hotels and Resorts	Yes
Holiday Inn	99 Washington Street	Economy	370	Late 2010	McSam Hotel Group	Yes
Wyndham	93 Bowery Street (Corner Hester Street)	Full-service	106	Sep 2010	Unknown	Yes
		Total	10,298

It is important to mention that even though the Manhattan lodging inventory declined from 2004 through 2006 due to condo conversion, room supply is expected to grow significantly in the future. As illustrated in the preceding table, as many as 10,298 new rooms, or 61 properties, will enter the Manhattan market from 2009 through 2011. The proposed supply represents 15.5% of the 2008 Manhattan room supply, increasing the number of guestrooms from 66,438 in 2008 to 76,736 as of 2011. These 10,298 rooms are far more than all the new supply that opened between 1998 and 2007 (5,607 rooms). As a result of the protracted disruption in the capital markets and the slowdown in the U.S. and local economies, the anticipated new supply represents an approximate 36.0% decrease from our estimate last year. The following chart presents the pipeline by neighborhood.

Based on the data outlined previously, Manhattan is forecast to experience a record increase in hotel room supply over the next few years, as can be observed in the following graph.

Of the anticipated new projects, 18 represent mid-scale hotels, or 30% of the total new supply, while 22 hotels, or 36% of the proposed properties, can be classified as boutique hotels. Only three new lodging facilities have been proposed for the luxury segment (The Chatwal, The Setai Fifth Avenue, and the Trump SoHo), not including the reopening of The Mark Hotel. Significant barriers to entry, including high construction costs, prohibitive land costs, and a lack of available sites, continue to remain key factors when considering construction of lodging facilities in Manhattan. It is also important to note that because of the tightening capital markets, some of the hotel developments proposed for Manhattan may not come to fruition, thereby reducing the number in the current pipeline, which bodes well for the market’s existing lodging facilities.