Manhattan Lodging Index: Q2 2020

Manhattan Lodging Overview

The COVID-19 pandemic continued to severely impair Manhattan hotels in the second quarter, as travel restrictions and business closures remained the new normal. With over 60,000 hotel rooms currently closed, widespread cancellation of group travel, and heightened economic uncertainty, second quarter revenue per available room (“RevPAR”) experienced a year-over-year decline of 81.6%. This represents the largest decline in RevPAR in modern history for the market.

“You won’t see meaningful increases in operating metrics for Manhattan hotels until we see a return of the business traveler, and that likely comes after a widely distributable vaccine and therapeutics become available.”

Warren Marr, US Hospitality & Leisure Managing Director

Unprecedented closures continue to impact Manhattan hotels

Six months since the start of the COVID-19 pandemic, Manhattan’s lodging sector continues to experience record closures. As of early September, approximately 61,450 hotel rooms (representing 58% of total inventory) in Manhattan were closed, with approximately 2,700 rooms reporting to stay closed permanently. It’s not surprising that, given their operating cost structure, higher-priced hotels are disproportionately impacted.

Luxury and Upper Upscale class hotels are the most impacted, with 70% or more of hotel rooms in each of these segments closed. Upper upscale hotels are experiencing the highest levels of permanent closures. On the other hand, lower-priced hotels have been relatively less impacted, driven by a combination of factors, including a comparatively lower operating cost structure.

Revenue graphic

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

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Contact us

Scott Berman

Scott Berman

US Hospitality & Leisure Practice Leader, PwC US

Warren Marr

Warren Marr

US Hospitality & Leisure Managing Director, PwC US

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