, Salem, MA


July 10, 2012

Skating rinks, yoga are latest ploys to increase hotel revenue


For new, full-service hotels in the midscale to high-end categories that opened from 2001 to 2005, "other income," such as sales from retail shops and other businesses not operated by the hotel, was almost 36 percent higher last year than for hotels built from 1980 to 1999, according to Boulder, Colo.- based STR Analytics, a unit of hotel-data provider STR Global.

"Newer hotels were built with more revenue efficiency in mind, and space that might have been wasted in earlier- constructed hotels was replaced in newer hotels by additional outlets and revenue-creating facilities," Carter Wilson, a director at STR Analytics, said in a telephone interview.

While rooftop bars have been around for decades, they only recently have become a significant source of additional income, particularly at urban hotels in such cities as New York, according to a December study by Jones Lang LaSalle Hotels, part of Chicago-based broker Jones Lang LaSalle.

In New York City, there are 35 properties ranging from midscale to luxury with a rooftop venue, many of which were recently added, Jones Lang said. Such businesses may produce revenue of as much as $120 per square foot in a month with high demand and "tend to be profitable venues," Jones Lang said in the report. That compares to $40 a square foot of room revenue during a peak-season month at an upscale hotel in a large city, according to Amelia Lim, a Jones Lang executive vice president.

"What we've been seeing in rooftop bars and other additional revenue-producing venues is the use of under-used real estate," she said in a telephone interview.

Hyatt's Andaz 5th Avenue boutique hotel at Bryant Park features a meeting venue on the second floor, called Apartment 2E, that resembles residential space with a fully equipped open kitchen in its center, a bar and an outdoor courtyard. During the day, its individual rooms are used for business meetings, and in the evening the entire space can be rented for private cooking parties.

Text Only | Photo Reprints

AP Video
Escaping Email: Inspired Vision or Pipe Dream? US Employers Add 209K Jobs, Rate 6.2 Pct US Stocks Plunge, Wiping Out July's Gains Looming Demand Could Undercut Flight Safety Six Indicted in StubHub Hacking Scheme Trump: DC Hotel Will Be Among World's Best AP Review: Amazon Fire Adds Spark to Smartphones All Aboard! LIRR Strike Averted Microsoft to Cut Up to 18,000 Jobs Time Warner Rejects Murdoch's Takeover Bid Yellen Says Economy Still Needs Fed Support Cleveland Expects Economic Boom From Lebron Justice Dept. Fines Citigroup $7 Billion Justice Dept. Fines Citigroup $7 Billion Downside of Low Mortgage Rates? Less Selling Cupcake Shop Crumbs Shuttering All Its Stores San Francisco Prepares for Soda Battle Dow Breaks Record 17,000
NDN Video
Under Armour Launches Biggest Women's Campaign with Inspiring Ad NYPD chokehold death of Eric Garner was homicide: medical examiner Christina Aguilera Pulls a Demi Moore! Man with no arms throws first pitch Chapter Two: Composing for a film in retirement Is Justin Bieber Dating a Model? Guardians of the Galaxy (Trailer) 'Sharknado 2:' Hottest Memes Surfing The Net Snoop Dogg Narrating Animal Footage Is Perfect Raw: Obama Gets Hug From Special Olympian Recapping a Blockbuster MLB Trade Deadline Tigers Acquire David Price - @TheBuzzeronFOX Russell Brand Slams Sean Hannity Over Gaza Conflict Segment Woman's Dive Goes Terribly Wrong Brian Williams Reports on Daughter Allison Williams' 'Peter Pan' Casting News Did Jimmy Fallon Look Up Heidi Klum's Dress? What Drama? Miranda Kerr Poses Topless Plane crashes in San Diego Costco parking lot Justin Bieber Takes To Instagram To Diss Orlando Bloom You Won't Believe the Celeb Cameos in "Sharknado 2"
Comments Trcker