Manhattan Lodging Index: Q1 2020

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Manhattan Lodging Overview

In March 2020, the COVID-19 pandemic swept the nation, and brought a stay-at-home order to Manhattan. During the month, over 60 hotels were temporarily closed and many others were repurposed as hospitals in an extraordinary attempt to combat the virus. As a result, first quarter RevPAR experienced a year-over-year decline of 29.1%. This represents the largest first-quarter decline in RevPAR since Q1 2009 when the financial crisis led to a year-over-year decrease of 32.5%. While occupancy posted marginal increases during the first two months of the year, a 63.4% decline in occupancy in March and a 15.2% decline in ADR drove the overall decline in RevPAR for the first quarter.

“If there’s one bright light coming out of this economic shock for existing Manhattan hotel operators, it’s that the supply of both existing hotel rooms and those under development is expected to decrease in the near term.”

Warren Marr, US Hospitality & Leisure Managing Director

Upscale properties exhibited the most notable year-over-year decline in RevPAR during Q1

Of the four market classes tracked, upscale properties exhibited the most notable year-over-year decline in RevPAR during the first quarter, decreasing by 31.8% from prior-year levels. For Upper Upscale hotel properties, where occupancy fell 24.7%, Q1 RevPAR was down 30.5%.

Luxury and Upper Midscale properties posted lower declines in RevPAR of 26.0% and 25.9%, respectively, with double-digit declines in occupancy of 24.1% and 18.0%, respectively.

During the quarter, all five Manhattan neighborhoods experienced year-over-year declines in RevPAR as occupancy and ADR fell across the city. The Midtown East submarket led with the largest decline in RevPAR of 33.4%.

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

How PwC can help

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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