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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