How special are these permits? No one got any

December 9, 2022 – Media Mention
The Real Deal

Real Estate partner, and co-chair of the Real Estate Hospitality practice, Yariv Ben-Ari was quoted in The Real Deal discussing the hotel building special permits requirement in the past year for hotel development.

The article states, "In the 365 days since the city required special permits to build a hotel, not a single application for one has been filed. While building permits have been sought and issued for new hotels, they appear to be for projects exempt from the law or grandfathered under the old rules, according to an analysis of Department of Buildings data. Hotel projects — which previously were allowed in commercial districts without having to jump through political hoops — abounded as city tourism boomed from the turn of the century until the pandemic."

Even without the extra political approval and the threat of a recession, it can be difficult to secure financing for hotels. Yariv noted, "All things considered, it is currently more lucrative to explore investing and turning around a distressed asset, versus trying to reposition or develop one through the special permit process."

Click here to read the full article from The Real Deal.