New Hotels

In 2004, three new hotels entered the Manhattan market: the 187-room Hotel Gansevoort, an upscale boutique hotel, opened in March in the Meatpacking District of Lower Manhattan; the 42-room Clarion Solita Soho opened in August; and the 110-room Hotel on Rivington opened in October. We note that these properties are all boutique hotels.

In addition, three lodging facilities reopened in 2004. The former 188-room Doral Park Avenue closed in November 2003 to undergo a $19-million renovation and expansion program, including the addition of 17 guestrooms; the 205-room property reopened in mid-July 2004 as the 70 Park Avenue Hotel, an upscale boutique property affiliated with Kimpton Hotels. The former Gorham Hotel reopened as the 115-room Blakely Hotel in June 2004 after undergoing a renovation; the mid-scale hotel is operated by BD Hotels. Finally, the former Majestic hotel reopened as the 220-room Dream hotel in October 2004 following an extensive renovation program.

Four additional hotels entered the market during 2005. Three of the properties opened in the Times Square area: the 140-room Hotel QT in January, the 125-room Holiday Inn Express Fifth Avenue in September, and the 357-room Residence Inn in December (the first hotel affiliated with the Residence Inn brand in Manhattan). The fourth hotel, the 136-room Hampton Inn Herald Square, opened in February near Madison Square Garden, representing the second hotel affiliated with the Hampton Inn brand in Manhattan.

Furthermore, two hotels owned by the Carlyle Group and Highgate Hotels, the former Howard Johnson and the Days Inn, underwent major renovations in 2005 and were converted to the Hampton Inn Times Square and the Hilton Garden Inn Times Square in August and November of that year, respectively.

Nine hotels opened in 2006, adding 1,008 units to the market, compared to 758 new rooms in 2005. Of the nine new hotels, five are mid-scale or economy products, and the remaining four are boutique lodging facilities. The properties are spread all over Manhattan; however, five of the hotels are located in Chelsea, Times Square, or on Fifth Avenue in Midtown West.

The following table lists the new lodging facilities that opened in Manhattan between 2000 and 2006, as well as hotels that reopened during that period.

Name of Hotel	Location	Type	No. of Rooms	Opening Date	Developer/Owner
Upper East Side
Courtyard by Marriott	92nd Street and First Avenue	Mid-scale	226	Aug-06	Madison Equities, LLC
	The property is part of a mixed-use development that includes �40,000 square feet of meeting space. Reportedly, the developer is constructing a 196-unit residential building on the adjacent site. The two buildings will share an exercise facility, a sauna, and a restaurant.
Midtown West
Herald Hotel	34th St. & Broadway, SE corner	Extended-Stay	60	Jan-00	JEMB Realty
Red Roof Inn	6 West 32nd Street	Economy	171	Jun-00	Apple Core Hotels
Hilton Times Square	42nd St. (between 7th & 8th Aves.)	Upscale	443	Jun-00	Forest City Ratner
Sofitel	44th St. (between 5th & 6th Aves.)	Upscale	398	Jul-00	Accor
The Muse	130 West 46th Street	Boutique	200	Aug-00	Cornerstone
Hudson Hotel	57th St. (between 8th & 9th Aves.)	Mid-scale	810	Nov-00	Morgans Hotel Group
Bryant Park Hotel	40th St. (between 5th & 6th Aves.)	Boutique	128	Feb-01	Pilevsky & McNally
The Chambers Hotel	56th St. (between 5th & 6th Aves.)	Boutique	77	Feb-01	Ira Drukier and Richard Born
Comfort Inn	442 W. 36th (between 9th & 10th Aves.)	Economy	56	Jun-01	Heena Hotel, LLC
W Times Square	47th St. & Broadway (SW corner)	Boutique	509	Dec-01	Intell Real Estate/Starwood
Best Western	522-24 W. 38th St. (bet. 10th & 11th Aves.)	Economy	83	Jan-02	Unigroup Hotel, LLC
City Club Hotel	55 West 44th Street	Boutique	65	Jan-02	Metropolitan Hotels, LLC
Ritz-Carlton	50 Central Park South	Luxury	277	May-02	Millennium Partners
Hotel 41	216 West 41st Street	Boutique	47	Aug-02	Private Investment Group
Westin Times Square	270 43rd St. & 8th Avenue	Upscale	863	Oct-02	Tishman Urban Development Corporation
La Quinta Inn Manhattan	17 West 32nd Street	Economy	182	May-03	Apple Core Hotels
Hampton Inn Chelsea	W. 24th Street� (between 6th & 7th Ave.)	Mid-scale	144	Aug-03	Hersha Hospitality
	Hersha Hospitality is also involved with the 136-room Hampton Inn Herald Square and the 65-room Hampton Inn Seaport.
Mandarin Oriental	10 Columbus Circle	Luxury	248	Nov-03	Related Co./Mandarin Oriental Hotels
	In July 1998, the Metropolitan Transit Authority, former owner of the New York Coliseum, approved the sale of that site for $345,000,000. In the summer of 1999, Related Companies and Time Warner began demolition of the Coliseum exhibition hall and an adjacent office tower to make way for a �2,100,000-square-foot complex that now houses the world headquarters of AOL Time Warner. This project also includes a Mandarin Oriental hotel; the property's facilities consist of 248 guestrooms, roundly 9,610 square feet of meeting space, a restaurant, a lobby lounge, a bar, and a �14,500-square-foot health spa. The hotel component opened in November 2003; the construction of the entire complex was completed in mid-2004.
Blakely New York	136 W. 55th Street	Mid-scale	115	Jun-04	Richard Born & Ira Drukier
	The former Gorham Hotel reopened as the Blakely New York in June 2004, following a renovation. The hotel is operated by BD Hotels.
Dream hotel	210 West 55th Street	Boutique	220	Oct-04	Surrey Hotel Associates
	The former Majestic hotel reopened as the Dream hotel following an extensive renovation. The hotel is managed by Hampshire Hotels.
Hampton Inn Herald Square	W. 31st Street� (between 6th & 7th Aves.)	Mid-scale	136	Feb-05	Hersha Hospitality
	Hersha Hospitality is also involved with the 144-room Hampton Inn Chelsea and the 65-room Hampton Inn Seaport.
Hotel QT	W. 45th Street (between 6th & 7th Aves.)	Boutique	140	Jan-05	Andre Balazs
Hampton Inn Times Square	851 8th Avenue at 51st Street	Mid-scale	300	Aug-05	Carlyle Group/Highgate Hotels
	Formerly, the hotel was affiliated with the Howard Johnson brand.
Hilton Garden Inn Times Square	790 Eighth Avenue (between 48th & 49th St.)	Mid-scale	369	Nov-05	Carlyle Group/Highgate Hotels
	Formerly, the hotel was affiliated with the Days Inn brand.
Holiday Inn Express Fifth Ave.	W. 45th Street (between 5th & 6th Aves.)	Mid-scale	125	Sep-05	JFK Airport SAI Hospitality
	The hotel is operated by Magna Hospitality Group, LC.�
Residence Inn Times Square	1033 Ave. of the Americas	Extended-Stay	357	Dec-05	G. Holdings
	Built by Harry Gross, developer of the Courtyard Times Square; this hotel represents the first flagged extended-stay product in Manhattan.
The Night	132 West 45th Street	Boutique	70	Apr-06	Hampshire Hotels & Resorts
Rockefeller Center Hotel	25 West 51st Street	Boutique	80	May-06	Club Quarters Corporate
	The Rockefeller Center Hotel is the first hotel in Rockefeller Center. Located at the top of Rockefeller Plaza, many guestrooms face the ice-skating rink, Radio City Music Hall, and St. Patrick's Cathedral. The hotel features a restaurant, a bar and lounge, a fitness center, a business center, and 24-hour concierge service.
Wingate Inn	235 West 35th Street	Mid-scale	92	Sep-06	Ocean King, LLC
	Represents the first Wingate Inn in Manhattan.
Holiday Inn Express Chelsea	232 West 29th Street	Mid-scale	228	Nov-06	McSam Hotel Group
Howard Johnson Express Inn	449 West 36th Street	Economy	40	Dec-06	The Lam's Group
Midtown East
Thirty Thirty	East 29th St. (bet. Park & Lexington Aves.)	Mid-scale	251	Jul-00	PMG
	This hotel is planned to undergo an extensive renovation in 2006/07, including all guestrooms and public space in connection with converting the property to a boutique hotel.�
Library Hotel	299 Madison Ave. at 41st St.	Boutique	60	Aug-00	Henry Kallan
Dylan Hotel	52 East 41st Street	Boutique	107	Oct-00	Morris Moinian/Allied Hospitality
Park South Hotel	122 East 28th Street	Boutique	143	Sep-01	Atlantic Stars
Le Marquis	12 East 31st Street	Boutique	123	Sep-01	Le Marquis Associates
The Alex	205 East 45th Street (between 2nd and 3rd Ave.)	Boutique	203	Sep-03	Izak Senbahar/Simon Elias
	Developer Izak Senbahar and hotelier Simon Elias developed "The Alex," a 31-story tower between Second and Third Avenues. Mr. Elias owns the Flatotel on West 52nd, while Mr. Senbahar has been a Manhattan apartment builder for the past 20 years. The Alex includes a 73-room, high-end boutique hotel on the lower ten stories, plus 130 furnished apartments available for a minimum stay of one month. In addition, the hotel offers an upscale restaurant, Riingo.
The San Carlos - Reopened	150 East 50th Street	Boutique	147	May-03	San Carlos Hotel, Inc.
70 Park Avenue Hotel	70 Park Avenue	Boutique	205	Jul-04	Kimpton Hotels
	The former 188-room Doral Park Avenue closed in November 2003 to undergo a $19-million renovation and expansion program, including the addition of 17 guestrooms. The property reopened in mid-July 2004 as the 70 Park Avenue Hotel, a 205-room, upscale, boutique hotel affiliated with Kimpton Hotels.
SoHo/Lower Manhattan
Tribeca Grand	6th & White Streets	Boutique	203	May-00	Hartz Mountain Industries
W Hotel	Union Square, Park Ave. So. & 15th St.	Boutique	270	Nov-00	Starwood/Related Cos.
60 Thompson St.	60 Thompson Street	Boutique	101	Feb-01	Pomeranc Group
Howard Johnson�	135 East Houston	Economy	46	Dec-01	Metro One Hotel, LLC
Maritime Hotel	Ninth Ave (between 16th and 17th Sts.)	Boutique	125	Jun-03	Private Developers
	The 12-story building was reportedly purchased for $19 million in 2001 by Sean MacPherson and Eric Goode, best known as developers of restaurants and clubs. They were joined by Mr. Born and his partner, Ira Drukier, who are hotel developers and investors.The property has been extensively renovated and is being marketed as an upscale boutique hotel; total cost of the project amounts to roundly $33 million.
Hotel Gansevoort	Ninth Ave and 13th Street	Boutique	187	Mar-04	WSA Management, Ltd
Clarion Solita Soho	159 Grand Street	Boutique	42	Aug-04	SoHo Grand Center, LLC
	This lodging facility is part of the Clarion Collection.
Hotel on Rivington	107 Rivington Street	Boutique	110	Oct-04	Paul Stallings
	According to the developer, Paul Stallings, the cost of constructing the property amounted to $30 million.
Blue Moon Hotel	100 Orchard Street	Boutique	22	Feb-06	Randy Settenbrino
	The Blue Moon Hotel is the city's only kosher hotel and is located across from the Tenement Museum. The interior design reflects the Old World charm of late-19th century Orchard Street.
Gramercy Park Hotel	2 Lexington Avenue	Boutique	185	Aug-06	Ian Schrager Company
	Ian Schrager closed the 357-unit Gramercy Park Hotel in February 2005 for an extensive renovation. Following the completion of the renovation, the hotel reopened as a 185-unit luxury boutique lodging facility. The property is connected to a tower, 50 Gramercy Park North, housing 23 residential units, and features a 190-seat restaurant, Wakiya, operated by the team from Nobu, a private roof club and garden, meeting space and two bars.
Downtown
Embassy Suites	Battery Park City		0	Jun-00	Forest City Ratner
Ritz-Carlton Battery Park	2 West Street	Luxury	298	Jan-02	Millennium Partners
Marriott Financial Center - Reopened	85 West Street	Upscale	504	Jan-02	Host Marriott Corporation
Embassy Suites - Reopened	Battery Park City	Mid-scale	463	May-02	Forest City Ratner
Millenium Hilton - Reopened	55 Church Street	Upscale	565	May-03	CDL Hotels
Hampton Inn Seaport	320 Pearl Street	Mid-scale	65	Mar-06	Hersha Hospitality Trust
	Hersha Hospitality is also involved with the 136-room Hampton Inn Herald Square and the 144-room Hampton Inn Chelsea. Owned and managed by Hersha.

As illustrated in the preceding table, most of the new supply in Manhattan since 2000 has been in the form of boutique properties. Overall, boutique lodging facilities represent 26 of the 55 hotels, or 32% of the guestrooms that entered the market or reopened in Manhattan between 2000 and 2006. New boutique hotels range from mid-scale to luxury in terms of facilities, amenities, and service. It is noteworthy that none of the boutique hotels opened or reopened in Downtown Manhattan or the Financial District. A further 2,139 boutique hotel rooms are expected to enter the Manhattan hotel market over the next three years. Thirteen new mid-scale hotels opened between 2000 and 2006, or 28% of the total new rooms. We note that another 3,651 mid-scale guestrooms are expected to enter the Manhattan market over the next three years.

Hotel Closings

The following table illustrates hotels that have closed in Manhattan in recent years.

Name of Hotel	Location	Type	No. of Rooms	Closing Date
Midtown West
The Helmsley Windsor Hotel	100 West 58th Street	Upscale	(240)	Nov-03
	Conversion to residential use
Inter-Continental CPS	112 Central Park South	Luxury	(211)	Jun-04
	Conversion to residential use
The Plaza	Fifth Avenue at Central Park South	Luxury	(805)	May-05
	In October 2004, Plaza Operating Partners, Ltd. sold the 805-room Plaza to Elad Properties for a reported total consideration of $675,000,000, or approximately $838,500 per room. The Plaza is currently being converted into a mixed-use development containing �181 luxury condominium units, �108,000 square feet of high-end retail space, three food and beverage outlets, a 130-unit transient luxury hotel, and a 152-unit condominium hotel. The plans also called for the preservation of the Plaza's Palm Court, Oak Bar, and Ball Room. The spa component will be upgraded and will continue to be operated by the hotel. The hotel operation will also contain approximately 2,500 square feet of meeting space. The Plaza is expected to reopen on or about April 1, 2007.
Wyndham	42 West 58th Street	Mid-scale	(209)	Jul-05
	Conversion to extended-stay studio apartments
Midtown East
Sheraton Russell	45 Park Avenue	Upscale	(146)	Dec-05
	Conversion to residential use
Swissotel The Drake	Park Avenue & 56th Street	Upscale	(495)	Mar-06
	The property reportedly will be demolished to make way for a new 70-story, mixed-use residential condominium.�
St. Regis	2 East 55th Street	Upscale	(78)	Jan-06
	This hotel converted 59 units to residential use in January 1, 2005, and a further 19 units in March 2006. The property was originally built in 1904 by John Jacob Astor and was declared a landmark in 1988.
Upper West Side
Empire Hotel	44 West 63rd Street	Mid-scale	(381)	Dec-03
	In December 2003, the Empire Hotel, located on West 63rd Street, closed; this property was to be converted to luxury residential use. However, as a result of improved market conditions, the property is currently undergoing extensive renovations and will reopen as an upscale boutique hotel by mid 2007.
Mayflower	15 Central Park West	Mid-scale	(365)	Oct-04
	In August 2004, the 18-story, 365-unit Mayflower on the Park, located at 15 Central Park West at West 61st Street, and an adjacent lot, were acquired by a partnership (consisting of William Lie Zeckendorf and his brother Arthur W. Zeckendorf; the Whitehall Fund, a proprietary investment fund managed by Goldman Sachs & Co.; and Caryle M.G. Limited) for a reported total consideration of $401 million. Subsequent to the acquisition, the property was closed, and the new owners plan to convert the hotel and develop the adjacent parcel into cooperative units.
Upper East Side
Hotel Delmonico	Park Ave. and 59th Street	All-Suite	(152)	Apr-02
	Conversion to residential use
Stanhope Park Hyatt	995 Fifth Avenue	Luxury	(185)	Feb-05
	Conversion to residential use
The Melrose Hotel	140 East 63rd Street	Boutique	(306)	Jun-05
	Conversion to residential use
The Mark	25 East 77th Street	Luxury	(176)	Dec-06
	Partial conversion to residential use
Downtown
Regent Wall Street	55 Wall Street	Luxury	(144)	Feb-04
	Conversion to residential use
	Total		(3,893)
	Excluding Empire Hotel		(3,512)

Fourteen hotels closed for full or partial condominium conversions from April 2002 through December 2006, accounting for a total of 3,893 guestrooms, or roundly 6.2% of the 2006 room inventory. These conversions reflect the strength of the Manhattan condominium market. We note that the condominium conversions were primarily limited to upscale residential neighborhoods, mainly around Central Park, where land and buildings are in short supply and condominium prices are high. These properties were all upscale or luxury in nature. Given the limited number of upscale/luxury lodging facilities available for condominium conversion, as well as the strength of the Manhattan lodging market, fewer conversions should occur in the next few years. The Empire Hotel, which was closed in December 2003, was originally acquired for conversion to residential use. However, because of the current strength of the Manhattan lodging market, the owners are now planning on reopening the property as an upscale boutique hotel following a �$30-million renovation program. The property is currently being renovated and is slated to reopen by mid 2007. Additionally, the Mark was originally planned to be converted into co-op units. However, current plans include the reopening of the Mark with 100 guestrooms. The opening is scheduled for January 2008.

In 2004, the Regent Wall Street, the InterContinental Central Park South, and the Mayflower closed in February, June, and October, respectively; these properties are expected to be converted to luxury condominiums.

Four properties closed in 2005 for either complete or partial conversion to residential use: the 185-room Stanhope Park Hyatt in February, the 805-room Plaza in May, the 306-room Melrose in July, and the 146-room Sheraton Russell in December. A fifth property, the 209-room Wyndham Hotel on West 58th Street, closed in July 2005 for possible conversion to extended-stay studio apartments. In addition, Elad Properties acquired the 805-room Plaza in October 2004, and the property is currently being converted into a mixed-use development containing �181 luxury condominium units, �108,000 square feet of high-end retail space, three food and beverage outlets, a 130-unit transient luxury hotel, and a 152-unit condominium hotel. The plans also called for the preservation of the Plaza�s Palm Court, Oak Bar, and Ball Room.

Two hotels closed in 2006: the 495-room Swiss�tel The Drake in March and the 176-room Mark in December. In addition, the St. Regis converted a total of 78 units to residential use. The Swiss�tel The Drake, at 56th Street and Park Avenue, was sold in April 2006. The property reportedly will be demolished to make way for a new 70-story, mixed-use residential condominium. The Mark will be converted into six luxury penthouse co-op apartments, 45 co-op units, and 100 guestrooms and suites. Three lodging facilities affiliated with Affinia Hotels are currently on the market and reportedly will be converted to rental or condominium apartments: the 172-room Beekman Tower, located a block from the United Nations; the 254-room Shelburne Murray Hill, at 37th Street and Lexington Avenue; and the 131-room Surrey Hotel, at 76th Street and Madison Avenue. If all three properties are converted to residential use, a total of 557 rooms will be taken out of inventory in 2007.

Proposed Hotels

Improved market conditions during the past three years have generated considerable interest in new hotel development in Manhattan. For the most part, this development was curtailed by the lack of available financing for new hotel construction and the strength of the office and residential markets; however, a number of hotels have opened recently, and more are expected to open in the near future.

Although it is entirely possible that some of these hotels will fail to open, it is equally possible that less-likely projects will proceed, or that new projects will be announced. The following table sets forth the number of new rooms that are anticipated to become available in 2007, 2008, and 2009.

Project	Location	Type	No. of Rooms	Anticpated Opening	Developer	Under Construction
Upper East Side
The Mark	25 East 77th Street	Luxury	100	Jan-08	Izak Senbahar & Simon Elias	Yes
	The Mark will be converted into 51 co-op units and 100 guestrooms and suites.
Midtown West
Hotel La Mela	120 West 44th Street	Full-service	230	Jan-07	O&O Properties	Open
	Former King Edward Hotel. Luxury boutique hotel managed by Desires Hotels, a divison of Tecton Hospitality. The hotel features roundly 2,000 square feet of meeting space, a restaurant and bar, a fitness center, and flat-screen televisions in all rooms.�
Plaza Hotel	5th Avenue at Central Park South	Luxury	260	Mid 07	Elad Properties	Yes
	The Plaza is currently undergoing conversion into a mixed-use development containing �181 luxury condominium units, �108,000 square feet of high-end retail space, three food and beverage outlets, a 130-unit transient luxury hotel, and a 152-unit condominium hotel. The hotel operation will also contain approximately 2,500 square feet of meeting space. The Plaza is expected to reopen on or about April 1, 2007.
Hilton Garden Inn Chelsea	119-121 West 28th Street	Mid-scale	175	Mid 07	McSam Hotel Group	Yes
Comfort Inn	305 West 39th Street	Mid-scale	78	Mid 07	McSam Hotel Group	Yes
6 Columbus Hotel	6 Columbus Circle	Boutique	90	Mid 07	Pomeranc Group	Yes
	Purchased in late 1999, the former West Park Hotel is being redeveloped and expanded as an upscale, boutique hotel, to be known as the �6 Columbus.� Steven Sclaroff is the property's designer. The hotel is located behind the Time Warner Center, southwest of Columbus Circle.
Empire Hotel (Reopening)	44 West 63rd Street	Boutique	425	Mid 07	West 63 Empire Associates, LLC	Yes
Ramada Inn	416 Broadway	Mid-scale	100	Aug-07	King Fook Realty Corp.	Yes
Doubletree Chelsea	124 West 29th Street	Mid-scale	241	Oct-07	McSam Hotel Group	Yes
Holiday Inn	121-25 West 26th Street	Full-service	125	Oct-07	McSam Hotel Group	Yes
Fairfield Inn Midtown	330 West 40th Street (between 8th and 9th Ave.)	Mid-scale	248	Late 2007	The Lam's Group	Yes
	Located adjacent to the 248-room Four Points on 40th Street.
Sheraton	28th Street (between 7th and 8th Ave.)	Full-service	175	Late 2007	The Lam's Group	Yes
Wyndham Garden Hotel	37-39 West 24th Street	Mid-scale	124	Late 2007	McSam Hotel Group	Yes
Wyndham Garden Hotel	341-343 West 36th Street	Mid-scale	228	Jan-08	West 36 Hotel Ventures, LLC	Yes
James Hotel	101 West 57th Street	Boutique	180	Jan-08	Stephen Shapiro & James Hotels	Yes
Fairfield Inn Chelsea	114-116 West 28th Street	Mid-scale	112	Jun-08	Midtown West Hotel, LLC	Yes
Four Points Midtown	326 West 40th Street (between 8th and 9th Ave.)	Mid-scale	248	Jun-08	The Lam's Group	Yes
	Located adjacent to the 248-room Fairfield Inn on 40th Street.
Homewood Suites	311 West 39th Street	Extended-stay	0	Jun-08	McSam Hotel Group	Yes
Candlewood Suites	339 West 39th Street	Mid-scale	183	Jun-08	McSam Hotel Group	Yes
Holiday Inn Express	343 West 39th Street	Mid-scale	210	Jun-08	McSam Hotel Group	Yes
Hampton Inn	337 West 39th Street	Mid-scale	186	Jun-08	McSam Hotel Group	Yes
Branded mid-scale hotel	61 West 35th Street	Mid-scale	150	Late 2008	McSam Hotel Group	Yes
Branded mid-scale hotel	63-67 West 35th Street	Mid-scale	296	Early 2009	Brack Capital Real Estate	No
Hotel Indigo	127 West 28th Street	Boutique	122	Early 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.�
Fairfield Inn	21-23 West 37th Street	Mid-scale	92	Mar-09	The Lam's Group	No
Midtown East
Hotel 373 Fifth Avenue	373 Fifth Avenue	Boutique	70	Feb-07	Magna Hospitality Group LC	Open
	McSam Hotel, LLC and Magna Hospitality converted a former office building on the southeastern corner of East 35th Street and Fifth Avenue into a limited-service boutique hotel, known as the Hotel 373 Fifth Avenue.�
Howard Johnson	203 East 24th Street	Economy	100	Early 2008	East Side Inn	Yes
Lower Manhattan
Hilton Garden Inn	6 York St. and Avenue of the Americas	Mid-scale	150	Mid 07	McSam Hotel Group	Yes
	The hotel will feature spacious guestrooms, meeting space, a business center, a swimming pool, a whirlpool, and an exercise room.
The Loft	130 Duane Street	Boutique	45	Mid 07	Hersha Group	Yes
	The Hersha Group and Sam Chang are currently constructing a 45-room hotel at 130 Duane Street that will be known as The Loft, which is anticipated to open in early 2007.
Allen Street	Allen Street (bet. Houston and Stanton)	Boutique	112	Mid 07	Jason Pomeranc	Yes
	Plans call for a 22-story hotel with 80 rentable units, 9 residential units, and 32 hotel condominiums, as well as a spa and a pool.�
Four Points Soho - Village	66 Charlton Street	Mid-scale	152	Mid 07	The Lam's Group	Yes
	The Four Points Soho will feature a full-service restaurant, a bar/lounge, a fitness center, limited meeting space, and two luxury suites with hardwood floors and views over the Hudson River.�
Downtown Hotel	377 Greenwich Street (Tribeca)	Boutique	83	Mid 07	Born & Drukier, Robert DeNiro	Yes
	Actor Robert DeNiro partnered with hoteliers Ira Drukier and Richard Born to construct the Downtown Hotel in Tribeca. The hotel is currently being built on a former parking lot at Greenwich and North Moore Streets. The hotel will be located adjacent to the Tribeca Film Center.
Unnamed Hotel	335 Bowery	Boutique	136	Late 2007	Born & Drukier	Yes
Hampton Inn�	54 Watts Street	Mid-scale	158	Late 2007	The Lam's Group	No
Standard NYC	W 13th St. (bet. Washington and West)	Boutique	335	Early 2008	Hotels AB	Yes
	The property is being developed by Hotels AB (Andr� Balazs) and will be 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.
Luxury Hotel	79-85 Crosby Street�	Luxury	71	Early 2008	Unknown	No
Trump Hotel & Tower Soho	246 Spring Street	Luxury	413	Early 2008	Sapir & Bayrock Group	Yes
W New York - Downtown & Residences	123 Washington Street	Boutique	217	Early 2008	Private Developer	No
	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. 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.
Comfort Inn	61-63 Chrystie Street	Mid-scale	60	Late 2008	BTW Hotels, LLC	Yes
Best Western	231 Grand Street	Economy	102	Late 2008	BTW Hotels, LLC	Yes
Wyndham Hotel	20 Maiden Lane	Full-service	115	Early 2009	McSam Hotel Group	Yes
Club Quarters Hotel	130 Cedar Street	Full-service	200	Early 2009	Masterworks Development Company	No
	The hotel will be a semi-private hotel primarily for member use but occasionally available to the public.
Lamco Hotel Plaza	4 Gold Street	Full-service	670	Early 2009	The Lam's Group	No
	Independent, 52-story, full-service hotel.�
Mercer Street Hotel	113 Mercer Street	Boutique	50	Early 2009	DCD Capital, LLC	No
Sheraton	217 Pearl Street	Full-service	356	Early 2009	The Lam's Group	No
Aloft	8 Platt Street	Mid-scale	276	Early 2009	The Lam's Group	No
Mondrian	9 Crosby Street	Boutique	274	Mid 2009	Cape Advisors, Inc.	No
Fairfield Inn	30 Fletcher Street	Mid-scale	184	Mid 2009	The Lam's Group	No
		Total	8,707

As illustrated in the preceding table, as many as 8,707 rooms, or 47 properties, may enter the Manhattan market from 2007 through 2009. It is important to mention that even though the Manhattan lodging inventory declined in 2004, 2005, and 2006, supply is expected to grow significantly in the future. The proposed supply represents roundly 13.8% of the 2006 current supply present in Manhattan, increasing the number of guestrooms from 63,174 in 2006 to 71,881 in 2009. The 8,707 rooms, which are expected to open between 2007 and 2009, are far more than all the new supply, totaling 4,588 rooms, that opened between 1998 and 2006. We note that our list of new supply does not include confidential projects or hotels that are in the initial phase of development; if these projects are included, supply growth could be close to 20% within the next three to four years. 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.

Twenty-one of the anticipated new projects represent mid-scale hotels, or 45% of the total new supply, while thirteen, or 28% of the proposed properties, can be classified as boutique hotels. Only two new lodging facilities have been proposed for the luxury segment, not including the reopening of the significantly smaller Plaza Hotel and the Mark. 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.