Dauphin News

PricewaterhouseCoopers (PWC) recently issued the following announcement.

Manhattan Lodging Overview

Increases in occupancy, ADR and revenue per available room (“RevPAR”) accelerated across Manhattan during the second quarter, as the vaccine rollout gained traction in Q1 and early Q2, and the city began to relax restrictions put in place at the height of the pandemic. Off an easy comp (Q2 2020), second quarter RevPAR experienced a year-over-year increase of 103.4 percent, heavily weighted to performance during the month of June.

“While RevPAR continued to rebound in Q2, Manhattan hotels have a long way to go before recovering to pre-pandemic levels. For 1H 2021, RevPAR was still down 65.2% from the same period in 2019, compared to down 71.2 percent for all of 2020. The Delta variant has contributed to a slowing in office re-openings across the city, leaving performance for the second half of this year in question.”

Warren Marr, US Hospitality & Leisure Managing Director

RevPAR increased 103.4 percent year-over-year during the second quarter of 2021, with both occupancy and average daily rate (“ADR”) surging as mask mandates and travel restrictions previously put in place during the COVID-19 pandemic were (temporarily) lifted. Year-over-year increases in occupancy were highest in June – up 54.6 percent. With overall occupancy for the quarter at 52.0 percent and ADR at $183.95, Manhattan RevPAR doubled from $47.02 in Q2 2020 to $95.65 in Q2 2021.

Of the four market classes tracked, luxury properties exhibited the most notable year-over-year increase in RevPAR to $209.42 - up 584.9 percent for the quarter, driven by a 230.8 percent increase in occupancy from 12.9 percent in 2020 to 42.7 percent, and a 107.1 percent increase in ADR from $236.72 to $490.20. For upper upscale hotel properties, where occupancy grew by 26.9 percent and ADR experienced an increase of 32.4 percent, Q2 RevPAR finished the quarter up 68.0 percent to $79.68.

Upscale and upper midscale properties posted relatively lower, but still significant increases in RevPAR of 55.8 and 55.4 percent, respectively. With lower increases in ADR of 14.8 and 1.5 percent, respectively, RevPAR finished the quarter at $76.54 and $79.95, respectively. Of note, upper midscale properties beat out upper upscale in RevPAR for the quarter.

Of the five Manhattan neighborhoods, all experienced year-over-year increases in RevPAR with occupancy and ADR growing across the island. Upper Manhattan had the largest increase in RevPAR - up 242.1 percent, driven in large part by a 194.3 percent increase in ADR year-over-year. Lower Manhattan RevPAR grew 199.2 percent, driven by a 90.9 percent increase in occupancy. Midtown South and Midtown West posted increases of 80.2 and 80.0 percent, respectively. Midtown East had the smallest increase in RevPAR - up 76.8 percent.

During the second quarter, RevPAR at full-service hotels proved to experience more significant occupancy and room rate growth compared to limited-service hotels. With year-over-year increases in occupancy of 48.0 and 40.1 percent, respectively, and increases in ADR of 49.8 percent and 22.0 percent, respectively, RevPAR increased 121.6 percent for full-service properties, while limited-service hotels saw an increase of 70.9 percent over the same period.

For chain-affiliated and independent hotels, second quarter RevPAR grew by 84.3 and 128.3 percent, respectively, driven primarily by increases in ADR of 38.1 and 54.0 percent.

Original source can be found here.