News for the Hospitality Executive
City – March 6, 2012—CBRE today announced that it has issued its
Winter 2012 Snapshot on the Manhattan hotel real estate market. The
forecasts continued strength in operating metrics and the Manhattan
investment sales market.
“Manhattan hotel investment sales rebounded significantly in 2011, and 2012 is expected to be a strong year as well,” said Bradley Burwell, senior associate, CBRE Hotels. “Fundamental lodging performance remains strong, and despite the addition of more than 4,100 units in Manhattan in 2011, occupancy remained constant at 84%, clearly showing that the city can continue to absorb new supply.”
Limited-service and focused-service hotels flagged by internationally recognized brands have posted strong performance, according to CBRE. Limited-service hotels comprise 20% of the inventory, compared to 17% of inventory in 2006. Performance for limited-service hotels has outpaced full-service hotels over the past few years, with occupancy now greater than full-service hotels. Meanwhile the Average Daily Rate (ADR) gap has decreased from 23% in 2007 to 18% in 2011.
Key findings in this report include:
There is little difference in Manhattan between full-service and limited-service occupancy rates. Limited-service hotels comprise 20% of the inventory, compared to 17% of inventory in 2006.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.