Manhattan could see a rare new hotel development as Harlem-based developer Artifact has filed plans for a nine-story, 40-room boutique hotel at 23-27 Allen Street. The proposed site is located at the border of Chinatown and the Lower East Side. According to an application with the Department of City Planning, the project would reach about 120 feet in height, include ground-floor retail space, and cover nearly 40,000 square feet.
Currently, three low-rise commercial buildings occupy the site: a restaurant supply store, an art gallery, and a produce importer. These structures are slated for demolition if the project moves forward. Artifact acquired 25 Allen Street for $5 million in 2022 but has not yet purchased the adjacent parcels needed for the full development.
A representative from Artifact declined to comment on the application.
New hotel construction in Manhattan has become increasingly rare since a 2021 city law began requiring special permits for new hotels. This regulation was supported by the Hotel Trades Council but faced criticism from real estate groups who argued it would limit hotel supply. Since then, tight financing conditions and market uncertainty following the pandemic have further slowed new projects.
According to a Cushman & Wakefield report cited by Crain’s, only three applications for hotel special permits were filed over a recent twelve-month period. These accounted for just 656 rooms combined, based on data from the Department of City Planning.
Artifact is known primarily for its residential developments in Harlem, including projects like the Harlem Collective coworking hub and a rental building at 2335 12th Avenue that benefited from New York’s now-expired 421a tax incentive program.
If approved and constructed, this Allen Street hotel would be one of very few new hospitality properties added to Manhattan’s inventory in recent years.
