Market Study
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MARKET STUDY Yonkers, New York County, New York 10701 Prepared For: Zarin & Steinmetz 81 Main Street, Suite 415 White Plains, New York 10601 Prepared By: Cushman & Wakefield, Inc. Valuation & Advisory 1290 Avenue of the Americas New York, New York 10104 C&W File ID: 19-12002-901477 Cushman & Wakefield, Inc. 1290 Avenue of the Americas New York, New York 10104 cushmanwakefield.com September 30, 2019 Kate Roberts, Esq. Associate Attorney Zarin & Steinmetz 81 Main Street, Suite 415 White Plains, New York 10601 Re: Market Study C&W File ID: 19-12002-901477 Dear Ms. Roberts: In fulfillment of our agreement as outlined in the Letter of Engagement, we are pleased to transmit our market study dated September 30, 2019. The purpose of the market study is to determine market conditions in the subject trade area for a hospitality property as of July 26, 2019. Pursuant to your request, this report consists of a hospitality market study for a proposed upper midscale class hotel property located in Yonkers, New York. In addition to the market study, at the request of our Client, this report also includes income and expense comparables. This report sets forth to highlight the relevant market information and economic outlook for the market area surrounding Yonkers, New York. It is expected that this information will be used for internal decision making in consideration of potential development of an upper midscale class hotel. The analysis contained in this report is based on estimates, assumptions and other information developed from our research and we do not make any representation to the future market performance. We take no responsibility for any events, conditions, or circumstances affecting the market that exists subsequent to the last day of our fieldwork, July 26, 2019. We did not consider the legal and regulatory requirements applicable to any potential development, including zoning, permits, licenses and other state and local government regulations. The methodology and details of our conclusions are outlined in the following market study. Thank you for the opportunity to be of service to you. We welcome any comments or suggestions regarding the content or opinions presented in the attached report. Kate Roberts, Esq. Cushman & Wakefield, Inc. Zarin & Steinmetz September 30, 2019 Page 2 Respectfully submitted, CUSHMAN & WAKEFIELD, INC. Mr. Ivan Melendez, MRICS Senior Director - Hospitality & Gaming Group New York-Certified General Real Estate Appraiser License No. 48000050497 [email protected] (212) 713-6894 Office Direct PROPOSED HOTEL TABLE OF CONTENTS Table of Contents Introduction ................................................................................................................................................................ 1 Purpose, Dates and Function of This Study .......................................................................................................... 1 Definitions of the Study .......................................................................................................................................... 1 Scope of the Assignment ....................................................................................................................................... 1 Data Collection ....................................................................................................................................................... 1 Intended Use and User .......................................................................................................................................... 2 Regional Map ............................................................................................................................................................. 3 New York City Regional Market Analysis ................................................................................................................... 4 Westchester County Regional Analysis ................................................................................................................... 13 Local Area Map ........................................................................................................................................................ 24 Local Market Area Analysis ...................................................................................................................................... 25 New York City Lodging Industry Overview ............................................................................................................... 39 Lodging Market Supply and Demand Analysis ........................................................................................................ 70 Supply Analysis-Existing Competitive Supply ...................................................................................................... 70 Proposed Hotel Facilities ..................................................................................................................................... 74 Commercial Demand ........................................................................................................................................... 74 Meeting and Group Demand ................................................................................................................................ 75 Leisure Demand ................................................................................................................................................... 75 Comparable Analysis – Industry Averages and Comparable Hotels ................................................................... 77 Assumptions and Limiting Conditions .................................................................................................................. 80 Addenda Contents ................................................................................................................................................... 83 CUSHMAN & WAKEFIELD III PROPOSED HOTEL INTRODUCTION Introduction Purpose, Dates and Function of This Study The purpose of the report is to determine market conditions in the subject trade area of Yonkers, New York for hospitality properties as of July 26, 2019. The area that is the subject of this report as well as the competitive market were visited on July 26, 2019. The date of this report is September 30, 2019. The market study is for use by Zarin & Steinmetz for the potential development of an upper midscale class hotel. Definitions of the Study According to the Uniform Standards of Professional Appraisal Practice, a market analysis is a study of real estate market conditions for a specific type of property. Additionally, the following definitions are utilized in connection with the market study of the subject: Market Study A macroeconomic analysis that examines the general market conditions of supply, demand, and pricing or the demographics of demand for a specific area or property type. A market study may also include analyses of construction and absorption trends (Dictionary of Real Estate Appraisal, 4th Edition, page 176). Scope of the Assignment The Standard Rules of the Uniform Standards of Professional Appraisal Practice (USPAP) requires a market analysis or consulting report to state the extent of the process of collecting, confirming, and reporting data. Alternatively, the scope defines the type of report in relation to the consulting problem. This report is to be construed as a “market study assignment” as defined in USPAP. This is an analysis in a summary, narrative report with the intent to perform consulting services in such a manner that the results of the analyses reflect a disinterested third party. The depth of analysis is intended to reflect the complexity of the real estate and nature of the assignment. Therefore, the consulting process includes the following procedures. Data Collection General and specific data was obtained from a variety of governmental and private sources specifically detailed in the report. The data used in this report has been verified with sources believed to be reliable to the extent possible. The analyses have relied on information and support services performed by the following companies: Data relating to the existing and proposed supply was derived from a variety of sources including but not limited to: Hotel Market Data, STR, property managers, property owners, public records, and primary field research completed by Cushman & Wakefield, Inc. Key market participants were surveyed regarding general market conditions completed by Cushman & Wakefield, Inc. Data relating to competitive supply is based on updated field survey research to existing data contained in the database of Cushman & Wakefield, Inc. Demographic reports of the subject trade area was provided from Experian Marketing Solutions, Inc. CUSHMAN & WAKEFIELD 1 PROPOSED HOTEL INTRODUCTION Intended Use and User Intended Use and User: This report was prepared for the exclusive use of Zarin & Steinmetz in their internal analysis for consideration of potential development of an upper midscale class hotel. This report is not intended for any other use or users. CUSHMAN & WAKEFIELD 2 PROPOSED HOTEL REGIONAL MAP Regional Map CUSHMAN & WAKEFIELD 3 PROPOSED HOTEL REGIONAL ANALYSIS New York City Regional Market Analysis Introduction Travel demand to the trade area is heavily influenced by corporate, group, and leisure demand generators located within the region. New York City, which is located 11.0 miles south of the subject trade area, is the primary