Assessing The Impact Of Location On Hotel Development: An Analysis Of Manhattan Hotels, 1822–2012

Keywords

agglomeration; competition; Hotel location; Manhattan

Abstract

This study aims to (1) analyze spatial-temporal variations of hotel development in Manhattan, New York from 1822 to 2012; (2) assess appropriate and explicit measures of agglomeration and competition effects on hotel performance; and (3) reveal significant locational determinants of hotel performance. By analyzing the data of 309 hotels through GIS-based spatial statistical methods, the results indicate that economy and mid-price hotels with smaller scales were concentrated in central Manhattan to benefit from Times Square and Central Park before the mid-20th century. A trend is observed later that luxury but still smaller scale hotels were dominant and created another hotel cluster in lower Manhattan to avoid the fierce competition and take advantage of Wall Street. Hotel levels and scales play vital roles in their performance and distribution, most of the closed hotels are in luxury level and smaller scales due to the higher closeness risk among them. Simultaneously, the findings suggest that accessibility to major attractions, convenience of transportation, safety, hotel star levels, and scales have all contributed to the success of hotels. By calibrating the optimal indicators with various scenarios of agglomeration and competition, we demonstrate that hotel performances are more sensitive to agglomeration effects than competition effects. The study provides valuable implications for planners, policy makers, and hotel industry, to adjust their planning policies, optimize land resources, and consumers' welfare.

Publication Date

1-2-2018

Publication Title

Papers in Applied Geography

Volume

4

Issue

1

Number of Pages

21-33

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1080/23754931.2017.1366356

Socpus ID

85066496195 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/85066496195

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