properties New York

Nobu Hospitality and Asset World Corp. Unveil Plans for Plaza Athenee Nobu Hotel and Spa New York

By Columbus International,27 December 2023

Nobu Hospitality has entered into a strategic partnership with Asset World Corp. to inaugurate the Plaza Athenee Nobu Hotel and Spa New York, an upscale 145-room hotel development situated on the Upper East Side of Manhattan in New York City. Situated between Park and Madison Avenues on 64th Street, the hotel will feature suites with both indoor and outdoor glassed terraces. Additionally, the property will offer a townhouse rental option, providing exclusive services. The suites, equipped with indoor and outdoor glassed terraces and gazebos, will be complemented by the townhouse’s distinctive offerings.

Noteworthy amenities encompass a traditional Japanese onsen bathing facility, a spa, and a wellness center. Plaza Athenee Nobu Hotel and Spa New York will boast a Nobu restaurant, offering an omakase experience—a Japanese dining style where guests entrust their menu choices to the chef. The hotel will also house a bar and lounge, along with a rooftop area designed for private events. Expected to be finalized by 2026, Asset World Corp. will oversee the comprehensive development of the project, managing both its conceptualization and design.

The collaboration has also revealed intentions for the creation of The Plaza Athenee Nobu Hotel and Spa Bangkok in Thailand, with the estimated development cost yet to be disclosed. Nobu Hospitality CEO Trevor Horwell expressed gratitude for the close collaboration with the AWC team, led by visionary CEO Khun Wallapa Traisorat. In a statement, Horwell mentioned, “The Plaza Athenee Nobu Hotel and Spa Bangkok and the Plaza Athenee Nobu Hotel and Spa New York will redefine the standards of luxury and sophistication not only in Thailand but also in the U.S. This partnership allows us to embark upon an extraordinary journey together.” This announcement comes on the heels of an exclusive agreement signed in July between AWC and Nobu Hospitality to introduce the first Nobu restaurant in Thailand, located on the top floor of The Empire—AWC’s flagship lifestyle mixed-use office complex in Bangkok’s central business district.

Source: Hotel Management

U.S. Housing Market Defies Odds: Rising Home Prices Persist Amid Economic Uncertainties

By Columbus International,17 October 2023

In recent months, the U.S. economy has stood at a crossroads, teetering between the specter of recession and the persistent challenge of soaring inflation. Amidst these financial uncertainties, a surprising resilience characterizes the housing market, where demand remains robust, and home prices continue to ascend.

Resilience in Housing Market Despite Economic Divides
Efforts by the Federal Reserve to curb inflation have led to significantly higher borrowing costs, marked by a 22-year high in mortgage rates. Despite these elevated rates, the housing market has defied projections of a decline. Goldman Sachs, in a notable revision, now forecasts a 1.8 percent increase in average home closing prices by year-end, a significant shift from their prior estimate of a 2.2 percent decline. This resilience can be attributed to the relentless demand for housing and a limited supply in the market. Strong demand, driven by a variety of factors including demographic trends and a growing population, coupled with constrained housing inventory, has fueled consistent price hikes. The situation is reflected in the recent revision of Goldman Sachs’ home-price forecast, indicating that the market remains on an upward trajectory despite the prevailing economic uncertainties.

Commercial Real Estate Faces Challenges
In contrast to the housing market’s buoyancy, the commercial real estate sector grapples with multiple challenges. The lingering effects of the pandemic, such as rising office vacancies, combined with the Federal Reserve’s efforts to control inflation through interest rate hikes, are impacting this sector. Higher interest rates are particularly concerning, leading to anticipated commercial mortgage renegotiations in the next few years. Regional banks are notably vulnerable in this scenario, exposing potential risks in the commercial real estate sector. The divergent fates of the housing and commercial real estate markets underscore the specific dynamics at play in each sector. The housing market’s resilience is attributed to its strong fundamentals and the essential need for shelter, while the commercial real estate market faces complexities due to evolving work trends and economic policies.

Yield Surge Raises Economic Eyebrows
The surge in the 10-year U.S. Treasury note yield to a 15-year high at 4.258% raises concerns about the potential economic impact. Higher yields could lead to increased borrowing costs, affecting various markets, including stocks, bonds, and housing. Of particular concern is the potential impact on mortgage rates, which could pose challenges for both prospective homebuyers and those seeking to refinance. The housing market, though displaying remarkable resilience, is not entirely immune to these economic shifts. An increase in mortgage rates could alter the affordability dynamics, potentially slowing down the rapid pace of home price increases. Investors and industry stakeholders closely watch for cues on how these yields might stabilize and their subsequent influence on the housing market.

Federal Reserve Balancing Act
The Federal Reserve’s cautious approach, as reflected in the minutes of their July 2023 meeting, showcases the delicate balance they strive to maintain. Controlling inflation remains a priority, and this is evident in the interest rate hikes implemented to slow the economy and curb rising prices. However, the Fed grapples with the need to carefully weigh these actions against their potential negative impacts on the economy, such as slowing hiring and increased business loan costs. The central bank’s actions are being closely scrutinized by various sectors, including the housing market. Their decisions significantly impact borrowing costs and, subsequently, housing affordability. Striking the right balance is crucial for the Fed to navigate the complex economic landscape and support the stability of both the housing market and the broader economy.

Housing Market Defies Mortgage Rate Surge
The surprising resilience of the U.S. housing market in the face of soaring mortgage rates stands as a testament to its robustness. Despite rates doubling over the past year and a half, major homebuilders’ shares have rallied, surpassing broader stock indices. The constrained housing supply, coupled with higher mortgage rates, has essentially trapped existing homeowners in their properties, diminishing available housing stock and compelling potential buyers to explore new properties. This resilience is underpinned by the fundamental need for housing. Regardless of mortgage rate increases, the demand for homes remains high, particularly due to demographic trends and societal shifts. The housing market has adapted to the new normal of higher rates, showcasing its strength and stability amidst evolving economic conditions.

A Glimpse into the Future
While concerns about the U.S. housing market persist due to the rapid rise in mortgage rates and a sharp slowdown in home sales, economists and analysts foresee a moderate market correction, rather than a crash on the scale experienced during the Great Recession. Factors such as low inventories, cautious building practices, demographic trends, strict lending standards, and low foreclosure activity contribute to the market’s resilience. These indicators, combined with the enduring demand for housing, hint at a market that is likely to continue its upward trajectory in a more measured manner. The housing sector is expected to adapt and find equilibrium even in the face of economic uncertainties, reinforcing its position as a cornerstone of the American economy. The U.S. housing market remains a pillar of strength amid economic uncertainties, continuing to surprise pundits and analysts with its unwavering growth. As the economic landscape evolves, only time will reveal whether this resilience is a temporary phenomenon or a lasting testament to the fundamental stability of the housing sector in the United States.

The Noisy Restaurant of New York: A Welcome Sound for Former Mayor Bloomberg (source: Grub Street, New York)

By Columbus International,14 September 2023

It’s a common complaint among New York restaurant patrons: restaurants are loud. Very loud! Too loud! However, for former mayor Michael Bloomberg, that cacophony is – at least for the moment – a welcomed and reassuring sound. “I was just at a restaurant last night. You couldn’t hear, the noise was so loud,” he noted while speaking at the ribbon-cutting ceremony for the new Ronald Perelman Performing Arts Center.

The context for these comments: Bloomberg was praising current Mayor Eric Adams for his commitment to “supporting the arts and culture,” and he added that he has “never been more optimistic” about the city’s future or its vitality: “People were standing, literally, looking down at my dinner. I thought they were going to take something from the table.” Once again, this is seen as a positive thing in the eyes of the former mayor. The opening of the center – slated to kick off performances on September 15, with a restaurant by Marcus Samuelsson in its foyer – marks a sort of personal victory for the former mayor, who contributed $130 million towards its construction. But let’s return to the subject of this noisy restaurant. Where was all this wonderful and reassuring commotion coming from?

During his speech, Bloomberg didn’t mention the name of the establishment. However, when ‘questioned’ after the event, he revealed the name: Elio’s, the Italian club of the Upper East Side known for its history as a gathering spot for politicians.