PwC Manhattan Lodging Index Q2 2024

Manhattan Lodging Overview

The speed of development in occupancy, common each day fee (ADR) and income per out there room (RevPAR), whereas strong, continued to decelerate. Luxurious lodge occupancy benefitted from elevated demand, whereas ADR development ranges for decrease priced properties continued to indicate important enhancements. For the general Manhattan lodge market, Q1 RevPAR elevated 9.4 p.c whereas Q2 elevated 6.8 p.c, from the identical respective intervals in 2023.

“The Manhattan lodge market averaged an occupancy degree of 87.2 p.c in Q2 2024, solidifying a return to stabilized pre-covid ranges. Whereas RevPAR development decelerated considerably all through the primary half of 2024, minimal lodge room provide additions over the following a number of years are anticipated to learn present inns, probably leading to worth compression available in the market.”

Abhishek Jain, Principal, PwC

RevPAR elevated 6.8 p.c year-over-year through the second quarter of 2024. Occupancy and ADR continued to advance, albeit at a slower tempo than Q1. Q2 annual will increase in occupancy have been highest in Could – up 5.2 p.c, and lowest in April – up 2.9 p.c. Q2 2024 common occupancy and ADR elevated to 87.2 p.c and $336.84, respectively, leading to Manhattan RevPAR leaping to $293.62 from $274.89 in Q2 2023.

Of the 4 market courses tracked, luxurious properties exhibited the most vital year-over-year enhance in RevPAR – up 8.3 p.c for the quarter, pushed by a 6.3 p.c enhance in occupancy from 76.2 p.c in Q2 2023 to 81.0 p.c in Q2 2024 and a 1.8 p.c enhance in ADR from $535.97 to $545.79.

For upscale properties, quarterly occupancy grew by 2.4 p.c and ADR by 3.2 p.c year-over-year, leading to a RevPAR enhance of 5.7 p.c from Q2 2023. Higher upscale properties skilled a 7.2 p.c enhance in RevPAR since Q2 2023, pushed by a 4.1 p.c enhance in occupancy and a 3.0 p.c enhance in ADR. Higher midscale properties posted a 6.6 p.c enhance in RevPAR year-over-year, attributable to a rise in occupancy of two p.c and a rise in ADR of 4.5 p.c. All 4 market courses noticed RevPAR enhance by at least 5 p.c since Q2 2023, pushed by will increase in occupancy and ADR throughout all courses.

Of the 5 Manhattan neighborhoods, Decrease Manhattan had the largest enhance in RevPAR since Q2 2023, of 9.6 p.c, pushed by a 5.4 p.c enhance in occupancy and a 4.0 p.c enhance in ADR year-over-year. Midtown South RevPAR grew by 9.3 p.c from $262.97 in Q2 2023 to $287.32 in Q2 2024, pushed by a 3.9 p.c enhance in occupancy and a 5.2 p.c enhance in ADR year-over-year. Midtown West and Higher Manhattan posted RevPAR will increase of 5.2 and 5.3 p.c since Q2 2023, respectively. Midtown East had the bottom year-over-year enhance in RevPAR of 5.1 p.c.

Throughout the second quarter, development in occupancy at full-service inns outpaced that of limited-service inns, with year-over-year will increase of 4.0 and three.1 p.c, respectively. RevPAR elevated 7.3 p.c since Q2 2023 for restricted service properties, whereas full-service inns noticed a rise of 6.9 p.c over the identical interval.

RevPAR within the second quarter elevated by 6.0 p.c yearover-year for chain-affiliated inns and eight.2 p.c for impartial inns. The enchancment in chain-affiliated inns was pushed by will increase in each occupancy and ADR -up 4.1 and 1.8 p.c, respectively, since Q2 2023. Relative to chain-affiliated properties, impartial inns skilled a extra strong enhance in ADR of 5.2 p.c year-over-year however milder occupancy development of two.9 p.c.

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