As of March 2013, there were a total of 348 hotels in the Manhattan: during 12 months those hotels generated total rooms revenue of $7.2 billion.
Manhattan hotels generated $7.2 billionStaff writer ▼ | Wednesday June 5, 2013 4:42AM ET
Manhattan remains the strongest hotel market in the nation. In spite of the largest increase in supply over the last 25 years, overall occupancy achieved an all-time-high occupancy of 86.7% for the 12-month period ending March 2013. However, the additional inventory limited the ability for hotel operators o maximize average rate, according to HVS Global Hospitality Services.
As of March 2013, there were a total of 348 hotels in the Manhattan market encompassing approximately 82,000 rooms. During the 12-month period ending March 2013, these hotels achieved an overall occupancy of 86.7 percent at an average rate of approximately $280, compared to an occupancy level of 61.6 percent at an average rate of $107 for the nation.
During the same period, the total room supply in Manhattan was approximately 29.5 million, generating total rooms revenue of $7.2 billion. Although total room supply in Manhattan accounted for 1.6 percent of the total supply in the United States, the market generates approximately 6.1 percent of total rooms revenue for the country.
With a further anticipated increase in supply of approximately 15% over the next three years, HVS forecasts moderate average rate growth over the same period, ranging from 5.6% to 5.9%. HVS forecasts that RevPAR will return to previous peak level by mid-year 2014. Reflective of such trends, the Manhattan lodging market seemingly remains poised for a full recovery.
As of the first quarter of 2013, half the room supply is affiliated with traditional brands (i.e. Hilton, Marriott, Starwood, IHG, etc), and over a third is independent. The remaining room supply consists of boutique brands such as the Standard, Gansevoort, Kimpton, Affinia, Thompson, and Morgans hotels.
Hilton, Marriott, and IHG have the largest number of properties, 24, 23, 17, respectively, and Hilton leads with 12 percent of total room supply, followed by Marriott with 9.6%, and Starwood with 9.3%.
A total of 89 new hotels were placed in service in Manhattan between March 2008 and April 2013, adding 15,799 rooms to the market and representing growth of 23.7 percent over the February 2008 level. Approximately 75 percent of the new supply entered the market from March 2008 to December 2010. This addition is the largest increase in supply over the last 25 years. ■