Luxury hotels making New York City irresistible to tourists.

This year, New York City is poised to set records for both domestic and overseas tourists. The number of people who come to New York from places nationwide is expected to increase by 600,000 to more than 43 million.

International tourism is forecasted to reach 7.2 million--a 5% jump (source NYC & Company). Of course, this news is welcomed by retailers, restaurateurs and hoteliers.

Lincoln Property Company is planning to create a new condominium hotel on the same block as the Peninsula Hotel, just off Fifth Avenue at 55th Street. This most glamorous address will help counteract our current hotel room shortage.

Another luxury hotel condominium and retail complex will join the Fifth Avenue elite at 400 Fifth Avenue and 36th Street, as international developer, Bi & Di Real Estate SpA, will construct a 56-story building. Plans currently project a total of 520,800 s/f--over 145,000 s/f of hotel space and 323,000 s/f of residential units.

The 80-room Rockefeller Center Hotel has now opened at 25 West 51st Street, occupying the first six floors of a new 25-story building. The Beckman Tower at 3 Mitchell Place on First Avenue will be sold to an investor and continue to be operated as a hotel. Next month, the Marriott Courtyard Manhattan, on the Upper East Side at 410 East 92nd Street, will become the fourth Courtyard in Manhattan.

The Jacob Javits Center expansion creates a need for many more hotel rooms which, in turn, requires more retail space and restaurants. There is much opportunity for expansion in the area, as there is still unclaimed space. Discussions are underway that will result in a new 1,500-room hotel at West 35th Street and Eleventh Avenue.

Luxe is leading the way downtown, with buildings on Wall Street and Lower Manhattan being swiftly transformed from one use to another. For example, an office tower at 75 Wall Street will soon be a hotel and condominium development.

With the recent announcements that Tiffany and Hermes are joining BMW, Hickey Freeman and Borders in Lower Manhattan, many other retailers also hope to become favorites of the new downtown.

In Soho, Donald Trump is creating a 45-story luxury hotel and condominium at 246 Spring Street between Verick St. and Sixth Avenue. Trump International Hotel & Tower SoHo will boast more than 400 hotel condo rooms and suites, as well as a spa, restaurant and 28,000 s/f of retail space. Architect David Rockwell will design a "downtown chic" version of the Columbus Circle Hotel. The 45-room Loft hotel, developed by Sam Chang's McSam Hotels and Hersha Group, is expected to open this summer at 130 Duane Street.

In 2008, superstar hotelier Andre Balazs' will launch The Standard New York at Washington Street and West 13th Street in the Meatpacking District. This 330-room hotel is sure to be a hotspot. Balazs has also teamed with owner SDS Investments to co-develop 15 William Street, a 400,000 s/f residential condominium development.

A major downtown developer, Joseph Moinian, is planning a 53-story building at 123 Washington Street, which will house a 220-room W Hotel and 180 residential condominiums.

By the end of the year, tourists will also enjoy the 83-room Downtown Hotel on Greenwich Street and North Moore Street in TriBeCa, owned by Richard Born, Ira Drucker and Robert DeNiro. Later this year, the New York Marriott at the Brooklyn Bridge will comprise an additional 280 rooms. It is the only full-service hotel in Brooklyn. Even more luxury retailers are joining the rosier there as the area continue evolve.

With my devotion to fabulous fashion, I must mention a delightful new trend in the hotel industry. Michael Kors has yet another project: he will design "Wardrobe," a collection of uniforms for W Hotels. He will be outfitting twenty W Hotel properties around the world in clothes inspired by his MICHAEL Michael Kors line. Staff will choose their own pieces from the line, including "polos, sweaters, slacks, and baby-doll blouses." The clothes will shift seasonally with over 50 outfits available. Kors new venture is fitting, as now the W Hotel's fashion will complement its breathtaking architecture and furnishings. This is a brilliant concept that I hope many more hotels and designers will soon adopt.

With New York City expecting a record number of visitors this year, attractive hotels are imperative. After tourists spend their day shopping, dining and exploring our great metropolis, they will no doubt seek a respite in plush accommodations. Opportunities abound as new hotel developments--all with lavish shopping--flourish in every corridor.

BY FAITH HOPE CONSOLO, CHAIRMAN, RETAIL LEASING AND SALES DIVISION PRUDENTIAL DOUGLAS ELLIMAN