In the latest sign that companies are allowing their executives to travel lavishly again, a new wave of luxury hotels is set to open in New York and other major cities as developers seek to cash in on the rejuvenated demand for high-end lodging.
Next week, Hyatt Hotels Corp. will open a new flagship for its luxury Park Hyatt brand in midtown Manhattan. The Park Hyatt’s 210 rooms will boast an average daily rate of more than $900, putting the New York Park Hyatt in elite company with Four Seasons, St. Regis and Mandarin Oriental as the city’s most expensive hotels.
Hyatt has high expectations for this property, which occupies the first 25 floors of a new 1,004-foot luxury condo tower. The company said last week it purchased the hotel from Extell Development Co. for $390 million. That comes to nearly $1.9 million a room—one of the highest prices ever spent on a hotel and the most that Hyatt, by this metric, has ever spent on a property.
“I can’t think of anyone who has spent as much on the construction of a new hotel,” says Ryan Meliker, a hotel analyst with MLV & Co. “They believe this property will help market the Park Hyatt brand, and not just domestically but globally.”
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