New York hotels become offices

New York hotels are turning themselves into offices, because office space is now more in demand than bedrooms.

Millennium & Copthorne's owners, Singapore-based City Development, is one group considering converting some parts of its New York hotels into serviced offices.

"There is no time scale for this, we are still at the planning stage," said Suzanne McIntosh, vice-president marketing for Millennium & Copthorne in the USA.

She said there were some rooms being used already as temporary offices but could not confirm how many or at which hotel.

The company has three hotels in New York: the 752-bedroom Millennium Hotel Broadway; the 427-bedroom Millennium Hotel UN Plaza; and the 807-bedroom Plaza. The company also owns the 561-bedroom Millenium Hilton, which is 200 yards from the site of the World Trade Center's twin towers. The hotel was badly damaged during the attacks.

It is estimated that 25 million sq ft of prime office space, or 15% of Manhattan's total, was lost during the attacks on 11 September, leaving companies scrambling for space.

At the Sheraton Manhattan hotel on 7th Avenue, all 650 bedrooms have been booked by investment bankers Lehman Brothers for six to eight weeks.