It is now cheaper to build a new hotel in New York City than to purchase an existing hotel, reports Bloomberg. Developers are planning to open 50 new hotels in New York this year through 2013.
As Jamie Dimon might put it: "Hey you fools, the economy is improving"
Hotel developers stopped building for years during the recesssion as a result of financing drying up. But thanks to insane money printing by Ben Bernanke, the money is flowing and the manipulated boom is on.
Manhattan hotels sold for an average of $505,157 a room this year through September 30, up from $344,799 for all of last year.
Bloomberg writes that Ian Schrager, a botique hotel developer, commented, "As long as a new build is around $400,000 to $500,000 a key, you can build all day long in New York because it’s in line or below what you would pay for an existing building."
Its cause they cant get the bedbugs out of the old ones.. LOL
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