Here are the highlights of NoMad’s real estate developments over the last month.
New Hotel Hot Spot
We have regularly reported on the wave of new hotels that opened in NoMad during the past year. Now the travel industry is taking note.
Travel Market Report recently published a feature, announcing that “Manhattan Has a New Hotel Hot Spot” in NoMad. In fact, within the past five years NoMad has added a total of 3,150 additional rooms, yet space for guests remains hard to come by. According to Smith Travel Research, 9 out of 10 rooms in NoMad are booked each night on average.
Travel Market Report explains why NoMad has seen such a surge in hotel development: “[NoMad] is the hottest and hippest part of the Big Apple right now. And where hip people gather, hotels soon follow.”
The article lists established hotels like the Gansevoort Park and Ace Hotel along with new entries such as The Redbury, The Paul and Arlo NoMad as examples of why the neighborhood’s reputation has grown so rapidly. In addition, the rooms are 20% less expensive than the average rate in Manhattan, despite the energetic area and high-level amenities.
“NoMad is one of the hottest districts in Manhattan,” hospitality advisor Paul Breslin told Travel Market Report. “What is new is how cool, or ‘lit’ this area has become. Just look at the energy and activity in this area, not to mention the adaptive reuse of some very famous buildings.”
292 Fifth Avenue
Speaking of hotels, a major deal has been struck between two well known hotel developers at 292 Fifth Avenue.
As reported by Crain’s New York Business, the $42.5 million deal was made with Richard Born (the Bowery, the Maritime, and the Mercer) selling 292, 294 and 296 Fifth Avenue to Sam Chang (who previously built hotels for Sheraton and Marriott). As planned by Born, the site was expected to include a 20-story building with approximately 12,000 square feet of apartment space and 57,000 square feet of hotel space.
Stay tuned for more information on possible changes to the development plan and which hotel brand will be coming to the space.
Moxy Hotel Funding
Lightstone Group has landed a $35 million construction loan for its Moxy Hotel at 105-109 West 28th Street in NoMad according to the Commercial Observer. Moxy is a brand of Marriott.
The Hotel, one of four that Lightstone is currently developing for Marriott in New York City, is planned for between Avenue of the Americas and Seventh Avenues and will include 349 guest rooms spread over 37 stories. The Moxy is expected to open in 2018.