New York City’s tourism industry boosts Newark’s hotel market

Newark, NJ’s hotel industry is thriving heading into 2012. While the continued evolution of the city’s corporate, cultural and entertainment attractions can be attributed in part to strong performance, the real catalyst can be found in the booming industry New York City tourist.

According to a January 2011 press release from the office of New York City Mayor Michael Bloomberg in 2010:

-48.7 million people visited New York City, 6.8 percent more than in 2009.
-39 million of these visitors were from the US and 9.7 million from abroad-both records.
-The hotel industry added 6,600 jobs in all subsectors of the industry; the industry employs the most people in the summer, and July 2010 set an all-time record for total jobs with 323,200.
-25.7 million rooms per night were sold, a new record, surpassing the previous high of 2 million rooms per night.
-Average daily room rates increased to $330 in December 2010, an increase of 8.9 percent over 2009.

The mayor recently announced that the city’s hotel inventory will reach 90,000 rooms by the end of 2011. This record number represents a 24 percent increase over the past five years. More than 7,000 additional rooms are in preparation.

All of these numbers translate into an overall upward trend for New York City’s $31 billion tourism industry, according to a recent press release from Mayor Bloomberg’s office. He says, “The city is on track for record visitor numbers this year… occupancy stayed near 85 percent, the highest in the nation.” In short, the city is on track to meet its goal of attracting 50 million annual visitors by 2012.

What does this have to do with Newark? Simply put, New Jersey’s largest city is a great budget alternative to Manhattan. Guests staying at four- and five-star hotels in Newark pay about half of what they would to stay in New York City. However, they can still be reached quickly and easily via an excellent public transport network. Newark Penn Station offers 15-minute transit to Manhattan with trains running 24/7. Newark’s strong transit infrastructure also includes a light rail line and bus service, as well as Newark Liberty International Airport.

In recent years, we have seen an influx of visitors to New York City, especially international travelers, staying at our Best Western Robert Treat Hotel (located at 50 Park Place in Newark). While they may have initially been motivated by a recession-based drive to save, the trend has continued to gain momentum as the recovery takes hold.

As a result, the Robert Treat Hotel has experienced a significant increase in occupancy. Through the end of October, our average occupancy rate was 87.9 percent for 2011, compared to 81.4 and 86.1 percent year to date in 2009 and 2010, respectively. The hotel reached 100 percent occupancy during June, July and August 2011, representing record bookings for our property. Additionally, Smith Travel Research reports that among hotels considered to be competitors to the Robert Treat in Newark, average occupancy increased from 78.3% to 81.4% to 82.9% year-to-date in 2009, 2010 and 2011. , respectively.

Further illustrating the strength of Newark’s hotel market, Courtyard by Marriott broke ground in April on a 150-room hotel, the first new hotel in downtown Newark in 39 years, right outside the Prudential Center Arena. Additionally, Indigo Hotel has proposed a 100-room boutique property just two blocks away.

Obviously some travelers want to stay in New York and will continue to do so. However, others are motivated by economics. Newark is clearly a great fit for that population, and smart hotel operators are working to meet their needs. We have stepped up our concierge service to offer transportation to the train station. We have New York City maps and brochures available, and we even help guests get tickets to shows and events.

Many of New York’s tourists staying in Newark are also finding that there is plenty to do here. We have world-class venues like the Prudential Center, which serves as home to the NJ Devils and Nets basketball teams, and hosts countless concerts and productions. The New Jersey Center for the Performing Arts, the Newark Museum, parks, universities, and great restaurants are among many additional highlights.

Increasingly, Newark is becoming a destination. As the Bloomberg Administration continues to invest in New York City’s tourism industry and initiates new programs to attract visitors, the hospitality industry here will continue to reap the benefits.