Hampton Inn Makes New York Debut With Announcement of Five New Hotels - Hersha Hospitality Management, Field Hotel Associates to Develop, Own and Manage First New York Hampton Inn Hotels
NEW YORK--Hampton Inn(r), the national brand of mid-priced hotels, with hotel developers Hersha Hospitality Management and Field Hotel Associates, announced today the hotel brand's largest multi-development urban project: the introduction of five new Hampton Inn hotels in New York City.
The new properties reflect an increasing trend for demand of new mid-priced lodging products in large urban cities, and the brand's development strategy to increase its presence in urban markets. Currently, the Hampton system comprises more than 1,157 hotels primarily in suburban and roadside locations. The two developers, Pennsylvania-based Hersha Hospitality and Field Hotel Associates, under license agreements with Promus Hotels, Inc., a franchise subsidiary of Hilton Hotels Corporation, expect to invest more than $120 million in the combined five New York hotel projects.
The new Hampton Inn hotels bring the total number of company-branded hotels within the Hilton Family of Hotels operating and planned for the New York City market to 12.
At a Topping Off ceremony held at the construction site of what will be the 24th Street Hampton Inn in the Chelsea neighborhood of Manhattan, officials described each new hotel opening through 2004:
Hersha Hospitality Management is developing three of the five hotels, including:
- The 144-room Hampton Inn Manhattan/Chelsea in Midtown, which has just topped off construction.
- The 136-room Hampton Inn Manhattan/Midtown-Herald Square, which will begin construction this summer.
- The 65-room Hampton Inn Manhattan/Seaport-Financial District in Manhattan's historic Seaport district, which also will begin construction later this year.
Field Hotel Associates is developing two of the five Hampton Inn hotels, including:
- The 216-room Hampton Inn JFK Airport in Jamaica/Queens, which recently opened for business.
- The 220-room Hampton Inn LaGuardia Airport in Elmhurst/Queens, which expects to begin construction this summer.
"We see tremendous demand for quality, branded, mid-priced hotels in urban markets, especially in Manhattan, which is severely under-served in this segment," said Neil H. Shah, director of development for Hersha Hospitality Management. "Typically in major cities, mid-market hotels are older converted properties in disrepair. Hersha is developing these properties from the ground up, with quality construction and distinctive style, to maintain the popular features of the Hampton Inn brand and the style and character of the Manhattan neighborhoods. With Hilton's latest technology and marketing and sales support, we believe that these new hotels will set a standard for urban, mid-priced hotels in New York.
"While all hotels were adversely impacted by the tragic events of September 11, we believe that New York hotels, like the people of this city, will come back stronger than ever. Our Hampton Inn at JFK, which opened in December, already is performing at better levels than we anticipated," said Gary Isenberg, Field Hotel Associates executive vice president of hotel operations. "We foresee that the strength of the Hampton Inn name, backed by the popularity of the Hilton HHonors(r) guest rewards program and Hilton Sales Worldwide, will help establish our leadership position in the JFK and LaGuardia hotel markets."
Other recently opened Hampton Inn hotels in urban cities include a 250-room Hampton Inn, also owned and operated by Hersha, in Center City Philadelphia at the convention center and a 288-room Hampton Inn & Suites in New Orleans.
"In addition to worldwide reservations capabilities and powerful marketing programs that contribute to the success of the Hampton brand, developers like Hersha and Field are attracted to our overall strong brand performance, which is reflected in Hampton's significant RevPAR premiums over its competitive set. For the full year 2001, Hampton's RevPAR Index was 117.6, up 6.9 points from year 2000," said Phil Cordell, senior vice president of Hampton brand management. "Hampton's customer base is divided evenly between both the corporate business and leisure travel segment, which makes us perfectly suited for the New York City market," continued Cordell. "As we diversify our locations, it's vital for us to be in the world's largest hotel market, especially in the months to come."
Hersha Hospitality Management, LP is headquartered in Harrisburg, Penn., with regional offices in Philadelphia and New York City. Hersha currently owns and operates 25 full- and limited-service hotels in the Eastern United States from New York City to Atlanta. Hersha foresees most of its future growth in the strong metropolitan markets of the Northeast in particular, including New York, Philadelphia, Boston and Washington.
Field Hotel Associates, based in King of Prussia, Penn., operates six hotels in New York and Philadelphia. Each of its hotels is managed by New Penn Management Co., also based in King of Prussia.
Hampton is part of Hilton Hotels Corporation, recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 2,000 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world's best known and most highly regarded hotel brands, including Hilton(r), Conrad(tm), Doubletree(r), Embassy Suites Hotels(r), Hampton Inn(r), Hampton Inn & Suites(r), Harrison Conference Centers(r), Hilton Garden Inn(r), Hilton Grand Vacations Company(r) and Homewood Suites(r) by Hilton.
Note: This press release contains "forward-looking statements" within the meaning of federal securities law, including statements concerning business strategies and their intended results, and similar statements concerning anticipated future events and expectations that are not historical facts. The forward-looking statements in this press release are subject to numerous risks and uncertainties, including the effects of economic conditions; supply and demand changes for hotel rooms; competitive conditions in the lodging industry, relationships with clients and property owners; the impact of government regulations; and the availability of capital to finance growth, which could cause actual results to differ materially from those expressed in or implied by the statements herein.