HotelFinanceGuy

[HotelFinanceGuy @maise]

@aarmlovi The same union covers NJ and the other areas surrounding NYC, albeit under a different (but similar) collective bargaining agreement. Not all hotels in NYC or NJ are union, but the non union hotels are at risk of getting unionized at any time.

[HotelFinanceGuy @maise]

@goatpurple1 @mattyglesias It’s complicated, that’s for sure. I don’t think it’s accurate to say the union and hotel owners “teamed up” as @mattyglesias said in his original post.

[HotelFinanceGuy @maise]

@goatpurple1 @mattyglesias Which the city will grant if the developer agrees to a union labor contract (there are factors in the approval process, but that is the big one)

[HotelFinanceGuy @maise]

@mattyglesias And also only non-union hotels are effectively banned - you can still get Union hotels approved.

[HotelFinanceGuy @maise]

@mattyglesias It’s a lot more complicated / nuanced than that. Most owners would prefer not to be forced to take on the CBA and allow new hotels to be developed and ABNB to compete with proper regulation.

[HotelFinanceGuy @maise]

@BenjaminDEKR Mostly because of unions.

[HotelFinanceGuy @maise]

@mattressguy_ Do you have something similar you would recommend.

[HotelFinanceGuy @maise]

@Liathetrader It’s like this every January and February. It’s a highly seasonal market. The articles about crazy high rates come out every December but they never follow up on the low rates a few months later!

[HotelFinanceGuy @maise]

@ChefGruel Love the idea but you have the hotel mechanics backwards - the guest room profits cover the F&B which is barely break even for most hotels. Labor costs are the culprit - almost every where but especially in areas where hotel labor is unionized (most big liberal cities).

[HotelFinanceGuy @maise]

@DHSgov @HiltonHotels Find out who the owner/operator is and go after them. Hilton might be able to exert some leverage they have under the franchise agreement, but they aren't controlling the day to day operations of the hotel (assuming this is a franchise of course).

[HotelFinanceGuy @maise]

@DHSgov @HiltonHotels It's highly unlikely this hotel is actually managed/controlled by Hilton. It's almost certainly owned by a third party who operates it as a Hilton under a franchise agreement and operated by the owner or a third party manager.

[HotelFinanceGuy @maise]

@msuster Curious what part of town your hotel is located in. The City has made major strides over the past 6 months but clearly there is more work to do.

[HotelFinanceGuy @maise]

@pitdesi The same union that was behind getting this law passed will never let any of these things happen in a big way, especially at the larger hotels.

[HotelFinanceGuy @maise]

@investingcre It also depends on how much term is left on the current franchise agreement. If there is more than a few years left you will be hard pressed to get anything from them.

[HotelFinanceGuy @maise]

@investingcre Depends on the damage and revenue generating potential of the hotel. The brands will size their key money (or fee ramp / NOI guaranty) based on how much fee revenue the property can generate.

[HotelFinanceGuy @maise]

@rohindhar It’s a lot more complicated and nuanced than that. The hotel union got Airbnb banned and are also behind the lack of new supply. They will get paid well for their efforts (to the detriment of hotel
Owners) in their next CBA in 2026.

[HotelFinanceGuy @maise]

@michaelmiraflor That all being said, the lack of new supply (other than the migrant shelters coming back online) will likely drive rates even higher from here.

[HotelFinanceGuy @maise]

@michaelmiraflor Rates are always very high from early October - Christmas in NYC. While they are at all time highs, it’s not far off from the prior peak (which was back around 2015) and are actually down from there if you adjust for inflation.

[HotelFinanceGuy @maise]

@sweatystartup Tip of the iceberg…..