NEW YORK – Mit Shah, who has built a successful business out of investing in select hotels and residences over the years, is excited to see luxury hotels flock to the area.
In an interview with Hotel News Now at the 45th Annual NYU International Hospitality Industry Investment Conference, the CEO of Noble Investment Group said the industry’s trends are following what travelers are making.
Marriott International announced the aforementioned A program by MidX Studios; Hyatt Hotels Corporation was founded Photos of Hyatt Studios; and Hilton announced plans for a smaller, longer-stay model it’s calling Program H3.
You may ask yourself, ‘Why is this happening? And I think it’s a trend in how consumers think about how they live and how they live,” he said. “These properties, let’s not mistake them for luxury, luxury, long-term stays like Residence Inn and Homewood Hotels and Hyatt House. which lasts more than 30 days.”
Editor’s note: The interview was recorded on June 5, at the end of the NBA Finals.
Shah said the mid-range, long-term sector is “a nexus between hospitality and multi-family,” and the shift to work is looking good for the industry over time.
He added that there are several reasons why he expects to continue selling the unit.
“One comes from the cost of construction, although the cost of construction is $230 to $240 per square foot, we believe we can build this with an area of $130,000 to $140,000 key,” he said. “We’re hoping for $90ish [revenue per available room] in these products, and because we believe that we can use them with about seven to eight employees … you can start to make the same profit.”
For more from HNN’s interview with Mit Shah, listen to the recording above.
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