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Manhattan's Lodging Industry Forecasted to Rebound
in Occupancy and Average Daily Room Rate in 2002
NEW YORK - Aug. 22, 2001 - According to PricewaterhouseCoopers' most recent forecast, Manhattan's lodging industry will experience a rebound in occupancy and a record average daily room rate in 2002.

PricewaterhouseCoopers forecasts occupancy to be 80 percent in 2002. This is an increase from 76.5 percent occupancy forecast for 2001. In 2000, Manhattan recorded a record occupancy level of 83.9 percent. Average daily room rate is estimated to grow to $222.00 in 2002, up from $219.50 in 2001 and $220.60 in 2000.
    
New hotel openings over the past 18 months contributed to the occupancy decrease this year; supply increased by 3.5 percent. The total number of hotel guests for the first six months of 2001 was 8.2 million, compared to 8.7 million in the same six-month period in 2000.
    
A rebound in occupancy and rate will occur in 2002 as new supply is absorbed into the market, economic conditions experience some improvement and New York hotels refocus marketing efforts, especially on small group meetings and leisure travelers.
    
"Occupancy and room rates in 2001 are exceeding long-term averages for New York City, and they are still the envy of the nation," said Sean Hennessey, director of PricewaterhouseCoopers' Hospitality & Leisure Practice. "Most Manhattan hotels have not compromised their price integrity. This will make it easier for the hotels to enhance revenues next year as market conditions improve. However, room rate growth will be much slower than in recent years because of the price sensitivity of leisure travelers, and the restricted travel patterns of the traditional corporate travelers."
    
Of the top 25 metro areas tracked by Smith Travel Research through the first five months of 2001, New York City ranks first in room rates and revenue per available room.
    
PricewaterhouseCoopers Hospitality and Leisure Group - with its staff of Ph.D. economists and specialized consultants - has established itself as the industry's leader in providing reliable lodging forecasts that offer true industry-wide samples based on proven econometric models. The group predicted every industry turning point in the last ten years, usually two years in advance of each market move.

 
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Contact:
PricewaterhouseCoopers
www.pwcglobal.com

 
Also See: Manhattan Lodging Report / Market Segment Analysis / Ernst & Young LLP / Jan 2000 

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