In the fourth quarter, operating performance of Manhattan hotels remained robust, albeit year-over-year comparisons were difficult, in part, due to the effects of Superstorm Sandy last year.
During the fourth quarter of 2013, Manhattan’s occupancy levels decreased by 0.6 percent, compared to the same period last year, as demand in Q4 2012 created by the after-effects of Superstorm Sandy did not exist in Q4 2013.
Despite a 4.4 percent decline in November, average daily rate (“ADR”) grew, albeit at a marginal pace of 1.0 percent, in the fourth quarter. This combination led to flat year-over-year RevPAR levels, with only a 0.4 percent increase in the fourth quarter.
On an annual basis, occupancy levels grew 0.8 percent while ADR increased 3.1 percent, driving a 4.0 percent increase in RevPAR, representing the fourth consecutive year of solid RevPAR growth. By comparison, US RevPAR increased 5.4 percent in 2013.