DOB Green-Lights Cambria Suites Hotel on Schermerhorn
More than a year after the news that Cambria Suites had entered an agreement with a franchiser to build the brand’s first Brooklyn location, the Department of Buildings signed off on the New Building application for a 12-story, 300-room hotel at 75 Schermerhorn Street in Downtown Brooklyn. The developer for the project paid $22,750,000 for…
More than a year after the news that Cambria Suites had entered an agreement with a franchiser to build the brand’s first Brooklyn location, the Department of Buildings signed off on the New Building application for a 12-story, 300-room hotel at 75 Schermerhorn Street in Downtown Brooklyn. The developer for the project paid $22,750,000 for the 17,000-square-foot lot a year ago and plans to erect a 175,000-square-foot hotel on the site. According to a Brooklyn Eagle article last year, the new hotel will have a swimming pool, fitness center, coffee bar and conference rooms on site; as of this morning, though, the parking lot business that’s taken up the site for many years was still in full swing. Cambria Suites will have to compete with the 247-unit hotel down the road at 300 Schermerhorn Street. GMAP P*Shark DOB
quoting you jack –
“Could it be possible that they are opened as hotels but then a few years later they suddenly turn into “luxury” housing?”
BrooklynLove, who said “near future” or put a timeframe of “5 years”?
Regardless, you’re convinced this hotel boom is hinged on these hotels staying hotels. I’m not convinced.
Jack – it would make zero financial sense to put up a hotel with plans of condo conversion in the near future. the concept is idiotic.
hotel construction costs + cost of conversion – 5 yrs hotel net revenues
much greater than
condo construction costs – 5 yrs parking lot rent revenues
in other words, if you plan on converting in 5 yrs it makes more sense to sit on the land and then build 5 yrs from now
I’m not expecting the Burj Al Arab, but it’s certainly upscale (note that I never wrote luxurious)–especially for the Downtown Brooklyn area, as 11217 pointed out.
BH76, have you stayed at Cambria Suites Hotel?
Thanks. I like the way you flesh out those numbers.
I’m more of a concept guy…you seem good with the details.
11217
A national statistic such as the one Hanson mentioned has little to do with Downtown Brooklyn or this particular deal.
I just ran some quick numbers and I’d say a 54% occupancy rate would be tough for this project. We know the land cost. Construction costs at $500 a food are another $51,000,000. Figure another $7,500,000 for the developer (15% of construction costs).
The citywide average daily rate is $290 a night. The Marriott is about that, so I’d think this place would be less. If you assume $250 a night, 54% occupancy rate, 60% operating expense ratio, and a 7% cap rate… it doesn’t sound possible to me.
Nice quote though, and I do like your post from 2:21.
Other Cambria Suites around the country have pretty good reviews on tripadvisor.
http://www.tripadvisor.com/Search?q=cambria+suites&sub-search=Go
Sounds like a really great addition to the neighborhood…
http://www.hospitalitynet.org/news/4032402.search?query=cambria+suites
“The 11-story hotel will have 300 rooms plus all the amenities of other Cambria Suites franchises, according to Peikin — including a swimming pool, fitness center, onsite barista coffee bar, meeting rooms, flat screen televisions, and high-speed and wireless capability.”
Everyone has a different idea of luxury, BH76, but for Downtown Brooklyn, I’d say this place does sound rather luxurious.