Defaults Are Rising in Sluggish New York City Hotel Market

More New York City hotel owners are defaulting on their mortgages, succumbing to a crush of new supply and rising expenses.

The surge in new development has pressured room rates, while short-term rental-listing websites such as Airbnb Inc. have also gained market share.

New York’s average daily room rate fell to $255.16 last year, according to research firm STR. That is down from $271.15 in 2014 and the lowest figure since at least 2013. A continued construction boom could push these numbers down further: 22,117 new hotel rooms were under construction or in planning as of January, according to STR.   —more—