Flatiron: Manhattan’s Hospitality Hotspot

Manhattan’s Flatiron District has long been a popular destination for tourists to spend an afternoon or evening. But in recent years, thanks to the neighborhood’s rapidly increasing number of hotels, more visitors to the Big Apple are spending their nights in the neighborhood too, according to a new report

The Flatiron/23rd Street Partnership Business Improvement District (BID) this week issued its eighth annual Flatiron: Where Then Meets Now report showcasing the significant development and growth of the hospitality sector in the district, which extends from 21st to 28th Streets, and Sixth Avenue east to Third Avenue.

As New York City’s tourism boom continues—with a 19.8% growth in visitors in the last five years and 65.1 million tourists expected citywide this year—the Flatiron District’s hospitality sector has grown substantially. The number of hotel rooms in the neighborhood increased by 93.8% since 2011, bringing the total number to over 4,650—and an additional 1,620 are currently under development, according to the report, which is available here.

“The growth of the hospitality sector in the Flatiron District has been remarkable, as this report demonstrates,” said Jennifer Brown, the Flatiron/23rd Street Partnership’s Executive Director. “It’s easy to see why hotel developers want to be in Flatiron. With the neighborhood’s central location, proximity to historic and cultural sites, plethora of restaurants, and easy access to public transportation, Flatiron is a popular destination for tourists and local visitors alike. The report also shows that Flatiron is a dynamic neighborhood with an irresistible mix of commercial and residential sectors.”

Flatiron is a prime illustration of a broader citywide trend: one out of every five dwelling units now under construction in New York City is a hotel. The number of New York City hotel units in the construction pipeline has doubled between 2013 and 2018. Among the seven hotels currently in development in Flatiron include the Renaissance Hotel, Moxy Hotel, Ritz Carlton, Virgin Hotel, and Springhill Suites Marriott.

Sixty restaurants, bars, cafes, and retailers operate within Flatiron’s 25 hotels, offering both tourists—as well as New Yorkers—more than just a place to stay. Flatiron: Where Then Meets Nowtakes a deep dive into the rich history, beautiful architecture, luxurious amenities, and diverse dining options at five of the district’s most exciting hotel developments: Freehand Hotel, The James New York NoMad, The Evelyn Hotel, The New York EDITION, and The NoMad Hotel.

“Flatiron is a welcoming destination for global travelers who want to experience everything that comes with one of Manhattan's most dynamic neighborhoods—world-class arts and culture, rich history and architecture, and exciting dining and nightlife,” said Fred Dixon, President and CEO of NYC & Company, the official destination marketing organization for the five boroughs of New York City. “With everything the neighborhood has to offer, including its wonderful and growing array of hotels, Flatiron's hospitality is an integral part of the New York City tourism landscape.”

Flatiron: Where Then Meets Now also provides a snapshot of how hotel development on both Broadway and 28th Street have been catalysts for business growth, paving the way for other new and trendy dining and retail offerings nearby.

In addition to a spotlight on the hospitality sector, the report comprehensively describes the district’s 2018 vital statistics, with additional findings including:

• There are approximately 560 ground floor businesses in the district—32.3% are national, and 67.7% are locally-owned independent businesses.
• Sometimes dubbed “The Fitness District,” Flatiron is home to 47 fitness gyms and studios, a 30.6% increase since 2014. The fitness and wellness categories represent nearly 1 out of every 10—or 9.9%—of all ground-floor businesses in the district.
• Flatiron is now home to more than 220 restaurants, bars, and quick and casual food establishments, representing 4 out of every 10 of Flatiron’s ground-floor businesses. So far in 2018, 18 dining establishments have opened in the district, with another 13 on the horizon.
• Restaurant growth has been particularly significant along 23rdStreet, where there has been an in-flux of new quick and casual dining options, including Sous Vide Kitchen, touted as the city’s first virtual food hall.
• Flatiron has an estimated 796,523 daytime employees.
• Demand for office space in the district has remained high in 2018 with tenants from the technology, advertising, media, and information (TAMI) sectors accounting for 45.4% of office space lease signings.
• Companies that moved their headquarters to Flatiron in 2018 include Splice and Dailymotion.
• Spaces, Knotel, MKDA, WeWork, Riskified, Fenwick & West, Bulletproof, and PitchBook Data signed new leases in the district.
• Flatiron is home to 32 coworking spaces, with six more opening soon.
• Flatiron’s estimated residential population is 251,243. The population is projected to rise by 1.23% to 254,331 by 2023.
• Within BID boundaries, there are approximately 5,000 residential units, with an additional 247 units planned or under construction.
• In 2017, ridership from Flatiron’s seven subway stations was 44.4 million, or 2.57% of the city’s total ridership.
• The PATH 23rdStreet Station ridership in 2016 was 2.8 million, or 7.58% of PATH New York City ridership. Ridership to the PATH 23rdStreet Station increased by 7.87% (+195,991) from 2016 to 2017.
• Citi Bike, NYC’s bike share system, has 13 stations with an average of 520 docking spaces in and around the district. In the month of June, a total of 160,818 bike share trips originated and ended within BID boundaries, and rides within the district account for 8.2% of New York City’s total bike share trips.
• On a typical weekday in 2017, 7,563 taxis dropped off 10,589 passengers in the Flatiron District, a 1.7% decrease from 2016. The decrease in yellow cab traffic continues to be attributed to the growth in ride-hailing apps.