By the end of 2018, Gene Kaufman Architect (GKA) will have completed the addition of 15,000 hotel rooms to New York City since the start of his career, a meaningful milestone for the prolific hotel architect whose work spans nearly every neighborhood in every borough.
Over the past three decades, GKA has specialized most notably in the design of hotels, but has also completed a vast range of other projects including residential buildings, commercial buildings, high-rises, modular building projects, student housing and schools. Through each of his hospitality projects – particularly the budget and mid-priced hotel developments – Mr. Kaufman strives to play a critical role in fueling NYC’s growth.
“As one of the top tourist destinations in the world, I believe it is our responsibility to accommodate a wider slice of life and not just those who can afford luxury stays,” said Mr. Kaufman. “We have an obligation to welcome visitors of all means and budgets, and thus provide ample mid-priced hotel options to drive accessibility for those who want to visit the best city on Earth.”
Of the 15,000 hotel rooms added over the past 30 years, approximately 13,000 of them are either mid-market brands such as Holiday Inn Express, Hampton Inn and Doubletree, or popular accessible brands including Hyatt, Hilton, Marriott and Sheraton hotels. On any given night, and assuming a capacity rate of 90 percent and average stay of $275, those 15,000 hotel rooms have the potential to generate more than $3.7 million for the City each day – that’s $1.35 billion per year.
“New York’s position as a global business and cultural center makes it one of the largest and most dynamic hotel markets in the world, and in fact, its projected growth can’t be supported without significant hotel development and a forward-looking approach,” said Kaufman. "I am pleased to play a role in maintaining that.”
Contributing to the rising demand for budget-friendly accommodations is an increase in visitors, both domestic and international, as well as a steady flow of business travelers. According to a New York Times report late last year, the city welcomed a staggering 61.8 million visitors in 2017 – an increase of roughly two percent from 2016’s 60.5 million tourists. Looking ahead, tourism figures are expected to reach 67 million annual visitors by the end of 2021, according to NYC & Company, the official destination marketing organization for the five boroughs of New York City.
The economic impact of increased visitor spending is seen in the creation of jobs – in both the construction and hospitality industries – and as a growing revenue source for the city.
According to a 2016 industry report from the New York Office of the Comptroller, the number of jobs in the hotel industry in New York City increased by 29 percent from 2006 to 2015, nearly double the citywide rate of job growth. Meanwhile, visitors spent an estimated $11.6 billion on
lodging in the City in 2014, and the industry contributed $1.8 billion in tax revenue to the City in fiscal year 2015, more than twice the 2006 amount.
“Not only is the hospitality industry generating meaningful revenue for the city, but also for the individuals living and working here,” added Kaufman, whose contribution to the overall visitor spend of $34 billion per year is not insignificant.
