Manhattan Lodging Index: Q3 2019

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Manhattan Lodging Overview

During the third quarter of 2019, revenue per available room (“RevPAR”) fell 3.1 percent, primarily due to declines in average daily room rate (“ADR”). Growth in lodging demand did not keep up with a supply increase of 3.1 percent, resulting in occupancy falling 0.5 percent

“Manhattan hotels have seen RevPAR grow in only one of the first nine months of this year. Investor concerns over a possible downturn are rising, business spending is decelerating, and political uncertainty is increasing with the coming presidential election. It remains to be seen whether Manhattan hotels will benefit in the fourth quarter from the historically strong retail traffic that visits the city between Thanksgiving and Christmas”.

-Warren Marr, US Managing Director

Across all Manhattan hotel classes, Luxury properties exhibited the most notable decline in RevPAR during the third quarter.

Decreasing by 3.7 percent from prior-year levels, Luxury RevPAR was largely driven by a decline in ADR of 2.7 percent. For Upscale hotel properties, where occupancy fell by 0.8 percent, Q3 RevPAR was further impaired by a decline in ADR of 2.6 percent. Upper Midscale hotels experienced a minimal decline in occupancy 0.1 percent, with ADR down 2.2 percent, leading to an overall decrease in RevPAR of 2.3 percent. Of the four hotel classes tracked, Upper Upscale hotels posted the smallest decline in RevPAR, driven by a decrease in ADR of 1.9 percent partially offset by growth in occupancy of 0.5 percent.

About PwC’s Manhattan lodging index

PwC’s Manhattan lodging index provides updates on Manhattan’s lodging market, widely used by lodging brands, developers, and owners. The publication includes:

  • A recap of the operating performance of hotels and sub-market trends
  • Discussion of the overall drivers of operating performance
  • The transactions environment
  • The supply pipeline

How PwC can help

Contact us

Scott Berman

US Hospitality & Leisure Practice Leader, PwC US

Warren Marr

US Hospitality & Leisure Managing Director, PwC US

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