PwC Manhattan Lodging Index This autumn 2023

Manhattan Lodging Overview

The speed of development in occupancy, common each day fee (“ADR”) and income per obtainable room (“RevPAR”), whereas robust, continued to decelerate because the market strikes on a path in direction of stabilization. Decrease-priced inns benefited from the shopper’s degree of fee fatigue being felt available in the market, with ADR development ranges for midscale properties triple that of higher-priced inns in This autumn. 2023 RevPAR skilled a year-over-year improve of 16.5 p.c, with Q3 seeing a rise of 13.6 p.c and This autumn being up 11.5 p.c.

“The Manhattan lodge market maintained an occupancy degree above 80 p.c in every month of the ultimate three quarters of 2023, a primary since 2019. Whereas return to workplace and resultant workplace vacancies stay a priority because it pertains to continued development in particular person enterprise journey, minimal lodge room provide additions over the following a number of years ought to profit present inns and more and more end in value compression available in the market.”

Warren Marr, Managing Director, PwC

RevPAR elevated 11.5 p.c year-over-year in the course of the fourth quarter of 2023. Occupancy and ADR continued to advance, with group and company persevering with to re-stabilize. Yr-over-year will increase in occupancy had been highest in November – up 5.7 p.c, and lowest in October – up 2.6 p.c. With general occupancy and ADR as much as 86.1 p.c and $390.18, respectively, Manhattan RevPAR jumped from $301.44 in This autumn 2022 to $336.14 in This autumn 2023.

Of the 4 market courses tracked, higher midscale properties exhibited essentially the most important year-over-year improve in RevPAR – up 14.7 p.c for the quarter, primarily pushed by a 12.8 p.c improve in ADR from $255.83 in 2022 to $288.59 in 2023, with occupancy rising 1.7 p.c from 85.1 p.c to 86.5 p.c.

For upscale properties, occupancy grew 4.8 p.c and ADR by 8.5 p.c year-over-year, leading to a year-over-year RevPAR improve of 13.7 p.c. Higher upscale properties skilled an 8.3 p.c improve in RevPAR, with occupancy up 3.7 p.c and ADR up 4.4 p.c. Luxurious properties posted the smallest improve in RevPAR up 6.2 p.c, attributable to a rise in occupancy of 5.1 p.c and the bottom improve in ADR among the many market courses – up 1.0 p.c.

Of the 5 Manhattan neighborhoods, Decrease Manhattan had the most important improve in RevPAR – up 13.2 p.c, pushed by a 6.1 p.c improve in ADR and a 6.7 p.c improve in occupancy year-over-year. Midtown West RevPAR grew 11.5 p.c, with a 7.6 p.c improve in ADR and a 3.6 p.c improve in occupancy. Midtown South and Higher Manhattan posted RevPAR will increase of 9.3 and eight.5 p.c, respectively. Midtown East RevPAR elevated 8.1 p.c over This autumn 2023.

In the course of the fourth quarter, development in occupancy at full-service inns outpaced that of limited-service inns, with year-over-year will increase of 4.9 and 1.8 p.c, respectively. RevPAR elevated 11.4 p.c for full-service properties whereas limited-service inns noticed a rise of 11.7 p.c over the identical interval, pushed by extra sturdy ADR development for limited-service inns of 9.7 p.c versus 6.2 p.c for full-service inns.

RevPAR within the fourth quarter elevated 14.8 p.c year-over-year for impartial inns and 9.4 p.c for chain-affiliated inns. The advance in impartial inns was pushed by will increase in each occupancy and ADR – up 4.1 and 10.3 p.c, respectively. Chain-affiliated inns skilled a extra average improve in ADR of 4.9 p.c, however barely stronger occupancy development of 4.3 p.c.

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