HVS International / NYU
|June 7, 2004
“After three years of negative forecasts and shrinking profits, the proverbial light at the end of the tunnel is rapidly expanding. There is a palatable sense of promise permeating the NYC hotel industry,” expressed Dr. Lalia Rach, Associate Dean, The Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management. Cristyne L. Nicholas, President & CEO of NYC & Company concurs, “this will be the strongest spring travel season since 2001.”
Manhattan experienced a supply growth in limited-service facilities, marking the first representation of the following three brands in Manhattan: the Sheraton Four Points, La Quinta Inn, and Hampton Inn. Furthermore, of the 1,653 rooms that are expected to enter the market in 2004 and 2005, 1,031 rooms, or roundly 62%, are anticipated to be limited-service products. Manhattan will welcome the first extended-stay product, the 357-room Residence Inn located in Midtown West in November of 2005. As New York continues to experience an economic expansion prompted by the overall national trend, moderate increases in supply, the expected year-over-year increases in the first four months of 2004, coupled with the favorable exchange rate of the Euro against the U.S. dollar, we expect RevPAR to increase by 7.8% in 2004. Furthermore, we project that by 2006, Manhattan’s occupancy will reach close to 1999 levels and average rate will return to 2000 levels.
“HVS International recognizes that the tourism industry is a prime economic generator for New York City. The year 2003 ended on an extremely positive note for the Manhattan lodging sector. Though the first six months of the year were severely impacted by the adverse effects on travel due to the war in Iraq and global uncertainty, demand levels started rising in June,” states Stephen Rushmore, President and Founder, HVS International. He further adds, “we forecast that the Manhattan lodging market will achieve robust growth in 2004.”
Also included in the overview are the aggregate operating results of four distinct hotel segments and three neighborhoods. The boutique segment registered the strongest growth in supply from 1998 to 2003. Despite the increases in supply, the boutique segment was the only category to show a positive average annual compounded growth rate in terms of both occupancy and RevPAR. Each hotel segment experienced moderate increases in occupancy from 2002 to 2003, however, average rate continued to register declines.
In 2003, the Midtown West area has shown stronger and earlier signs
of recovery, which can be attributed to the existence of a strong commercial
base coupled with numerous leisure activities. RevPAR in Midtown West remained
fairly stable from 2002 to 2003, while that of the other neighborhoods
declined by roundly three percent.
For more information regarding the 2004 Manhattan Hotel Overview, contact Roland deMilleret at (516) 248-8828, ext. 269 (firstname.lastname@example.org), or Peggy Yip at (516) 248-8828, ext. 250 (email@example.com).
HVS International is a global consulting and services organization focused on the hotel, restaurant, timeshare, gaming, and leisure industries. Established in 1980, HVS performs more than 1,500 assignments per year for virtually every major industry participant. HVS International is client driven, entrepreneurial, and dedicated to providing the best advice and services in a timely and cost efficient manner.
The Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management at New York University is a dynamic and growing educational and research center located in the heart of Manhattan. The Tisch Center offers an extensive complement of hospitality and tourism academic programs of study, including two bachelor’s degree programs and five master’s degree programs. In concert with its location in the financial and hotel capital of the world, coursework is focused on the areas of hospitality investments, hotel operations, revenue management, and customer relationship management relative to the international hospitality and tourism industry.
Leora Halpern Lanz
Dr. Mark M. Warner
|Also See:||New Owners of the 722-room Metropolitan Hotel in Midtown Manhattan Plan Renovation and Repositiong / July 2003|
|Doral Park Avenue Hotel to Close and Undergo $19 Million Renovation: Will Be Renamed and Repositioned as a Kimpton Hotel in New York City / July 2003|