New Projects Will More Than Double the Amount of Rooms Available Downtown

Lower Manhattan's remarkable resurgence - as evidenced by the now-single digit office vacancy rate, the influx of luxury retailers and the growing residential and tourist populations - has spurred a major wave of hotel development in the Financial District, according to a recent survey conducted by the Alliance for Downtown New York.

Lower Manhattan is currently home to nine hotels that range from small boutiques to luxury, full service accommodations. These hotels offer a total of 2,197 rooms and are operating at peak capacity, thanks to Lower Manhattan's surging economy and thriving tourism industry. Astute hotel developers are now capitalizing on the great demand for hotel rooms in Lower Manhattan by acquiring and renovating existing properties and developing new hotels. There are approximately two dozen Downtown hotel projects under construction or on the drawing board, projects that will create thousands of new hotel rooms in Lower Manhattan.

"The amount of investment pouring into Downtown's hospitality industry is further proof that Lower Manhattan is now New York City's most desirable and dynamic location," says Eric Deutsch, President of the Alliance for Downtown New York. "The significant unmet demand for facilities at every price point - from limited service to luxury and from chic boutique to hotels for large group meetings - provides developers with the perfect environment to build exciting new projects. I'm confident that these hotels will enjoy great success, spur additional development and help make Lower Manhattan an even greater place to conduct business and visit."

One of the companies involved in several upcoming hotel projects in Lower Manhattan is Queens-based McSam Hotel Group LLC, the leading hotel developer in New York City. McSam is teaming up with several top hotel chains to build a variety of hotels that will add nearly 2,000 hotel rooms to Lower Manhattan.

"Lower Manhattan's stature as a vital central business district, a neighborhood steeped in American history and world famous tourist attractions and as an exciting place to live is unmatched," says Sam Chang, President of McSam Hotel Group LLC. "We believe that our hotel projects now being developed for Lower Manhattan will satisfy the current and future lodging demand for years to come."

Notable activities in Lower Manhattan's hospitality industry during 2006 include:

• The transformation of the 53-room Manhattan Seaport Suites at 129 Front Street into The Exchange Hotel. All of the hotel's rooms have been completely renovated and a redesign of the common areas created a new arrival area, restaurant and lounge
• The re-opening of the 9-story, 65-room Hampton Inn Manhattan/Seaport-Financial District on Pearl Street by Hersha Hospitality Management, a hotel management company of nationally franchised, midscale and upscale hotels
• The purchase of the 138-room Holiday Inn Wall Street by LaSalle Hotel Properties, a leading real estate investment trust. The hotel is set to undergo an 18 month, $60 million renovation and will be repositioned as a luxury high-style independent hotel
• The $300 million purchase of the 463-room Embassy Suites Hotel by Goldman Sachs

New projects under construction or in development include:

• A hotel/condominium at 50 West Street
• A 53-story building with two hotels at 217 Pearl Street with a total of 660 rooms, including a public plaza, covered public pedestrian circulation space, ballrooms, conference facilities, and rooftop bar
• A 53-story hotel/condominium at 123 Washington Street that will feature meeting rooms, an ancillary spa and fitness center, a high-end restaurant and lounge and a sky lobby
• A 26-story limited service hotel at 126 Water Street with ground floor restaurant
• A 36-story hotel at 99 Washington St with restaurant and other retail
• A 39-story hotel at 100 Greenwich Street with meeting rooms, restaurant, spa and fitness center, and subway improvements
• A 35-story limited service hotel at 50 Trinity Place, with retail and subway improvements
• A 20-story Wyndham Garden hotel at 20 Maiden Lane at Nassau Street
• A 20-story luxury full-service hotel at 8 Stone Street, featuring extensive conference space, restaurants, and other amenities
• A 39-story hotel at 33 Beekman Street