We assembled a panel of industry experts to tackle this month’s question.
Here’s what they had to say.
Michael Barry, president, Ironstate Development (Hoboken)
The urban areas of northern New Jersey, particularly Jersey City and Hudson County, continue to grow and thrive as active residential, commercial and retail neighborhoods. The tremendous investment in the form of new condominiums, apartment buildings, office headquarters, startup companies, restaurants, shops and, of course, public infrastructure, have reinvigorated historic neighborhoods and reinvented new vibrant neighborhoods in areas formerly devoted to manufacturing uses.
Hospitality is naturally a key ingredient in this recipe. A mixture of business clientele, social needs and tourism all contribute to a vibrant hotel marketplace.
Our regional portfolio consisting of the W Hoboken, Element Harrison-Newark and the recently opened Residence Inn by Marriott Jersey City all are all located next to public transportation options into Manhattan, but succeed in large part by placing guests in the heart of vibrant New Jersey urban destinations with comprehensive commercial and social offerings.
Suraj Patel, president, Sun Group of Companies (Indianapolis)
New Jersey’s fractured regulatory structure is a dual-edged sword for its hotel market. On the one hand, years of delays in approvals and permitting from byzantine township reviews make New Jersey one of the hardest states to develop in — we’re finally under construction on two hotels in West Orange and Secaucus that took over three years each for entitlements. In the last five years, the three brand new Hilton hotels we’ve built in New Jersey took over 12 years of development and approval time in aggregate! That resulting barrier to entry has left New Jersey with so much legacy product that’s 20 to 30 years old relative to the rest of the country, that new, modern hotels invariably do well once they are allowed to be developed. New Jersey’s pharmaceutical, tech and general business demand is some of the highest in the nation relative to the anemic rate of new supply in the state. We’re happy to continue developing to service New Jersey, but only in friendly municipalities that are welcoming of new product. We’re also keen to work with municipalities to bring modernized conference and community facilities as part of our developments.
Carey Tajfel, co-president, Hotels Unlimited Inc. (East Windsor)
Hotel investment and development in New Jersey are driven by growing hotel demand from both business and tourism. New Jersey’s industrial parks attract Fortune 500 companies and the expanding pharmaceutical and medical sectors bring plants, corporate headquarters and top hospitals with hotel needs. On the tourism side, clean beaches, theme parks and an expansion of upscale dining options at the Jersey Shore keep the hospitality industry strong during peak season. During the offseason, tourism drivers such as year-round festivals, state-of-the-art sports facilities and concert venues and highly publicized events like the Haskell Invitational and New Jersey Marathon are a boon to hoteliers. Plus, we’re able to offer more competitive rates than nearby New York and Philadelphia, which helps draw a steady stream of consumer dollars and supports smart, sustainable growth.
Jim Kirkos, CEO and president, Meadowlands Liberty Convention & Visitors Bureau (Rutherford)
The Meadowlands Region draws travelers from all over the world who never set foot in New York City. Bergen County’s economy would be the ninth-largest in the United States if it were a state, so business travelers visit our area to call on customers, attend conferences and manage their interests. In particular, the Meadowlands Expo Center, which is busy more than 300 days per year, accounts for a large volume of room nights locally in our more than 8,600 hotel rooms. Supported by popular attractions such as MetLife Stadium, Medieval Times, Meadowlands Racetrack and Pole Position Raceway, room rates and occupancy continue to grow in the Meadowlands region as a result.
At one time, New Jersey had the most popular multi-sports venue in the world, which was a huge attraction for tourists who attended concerts, sporting events and cultural expositions at the Meadowlands Sports Complex. A variety of economic considerations have resulted in changes to the composition and activities at the Sports Complex, but as a branded destination it is second to none: Who has not heard the term ‘live from the Meadowlands’ during a broadcast? After this long wait, as American Dream becomes a reality, we will soon enjoy the impacts of a revived and reinvented Meadowlands Sports & Entertainment Complex, which will expand the tourism market exponentially in the region.
