New Zoning Restraints For Local Hotels?

March 2011

Herrick's Hospitality Group has recently become aware of new zoning restraints the City of New York seeks to place on new hotel developments and conversions in the Hudson Square area, and further uptown west of 11th Avenue in the 40s and 50s.

The City's effort to limit hotel developments and conversions began late last year, when it added controls over new hotels to the rezoning of Tribeca. With that rezoning, any new hotel or hotel conversion in Tribeca with more than 100 keys would require a special permit, including a lengthy public review process and required discretionary approvals by the City Council.

The same type of restrictions are currently being considered for the Hudson Square area, bounded by Houston Street to the north, Canal Street to the south, and Sixth Avenue and Greenwich Streets to the east and west (see Hudson Square Rezoning – below left).

Also significant is a proposed change to the zoning map that will prohibit hotels in a ten-block area bound by the West Side Highway to the west, West 55th Street to the north, Eleventh Avenue to the east, and West 43rd Street to the south.

Several community groups and other interested parties have been working to encourage the City to limit hotel developments and conversions in certain areas of Manhattan and the outer Boroughs—and the movement appears to be gaining momentum.

This all comes at a time when tourism remains a bright spot in the local economy. Last year, total hotel room inventory jumped to 86,500, a record high. With another 4,000 rooms in the pipeline for 2011 and beyond, the hospitality industry continues to reflect the diversity and energy of New York City.

Herrick's Hospitality and Government Affairs Groups will continue to monitor developments in this area closely.

When we hear about new developments, so will you.

For more information on these recent developments, please contact: Mitchell Korbey at (212) 592-1483 or [email protected].

© 2011 Herrick, Feinstein LLP. Hospitality Group News Alert is published by Herrick, Feinstein LLP for information purposes only. Nothing contained herein is intended to serve as legal advice or counsel or as an opinion of the firm.