New York University - School of Continuing and Professional Studies
HVS International
Quotes
Click on the links below to read quotes from the following individuals:
 
Michael R. Bloomberg Mayor of the City of New York
 
 
Jonathan M. Tisch
Chairman,
NYC & Company
 
 
Stephen Rushmore
President and Founder,
HVS International
 
 
Lalia Rach
Ed.D, Associate Dean
The Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management
 
 
Cristyne L. Nicholas President & CEO,
NYC & Company
 
 
Mark Lomanno
President,
Smith Travel Research
 
 
Joseph Spinnato
President & CEO,
Hotel Association of NYC
 
 

Manhattan Operating Statistics (Class)

HVS International compiled data provided by Smith Travel Research to illustrate the effects of the current state of the economy on different classes of hotels in Manhattan. The following tables compare the performance of all reporting hotels in Manhattan for year-end figures from 1998 through 2003; results are broken down by market segment: luxury, boutique, first-class, and other.

Luxury

Year Supply % Change Demand % Change Occupancy % Change ADR % Change RevPAR % Change
1998
3,057,497
---
2,468,267
---
    80.7 %
---
$323.28
---
$260.98
---
1999
3,143,924
    2.8 %
2,471,243
    0.1 %
78.6
    (2.6) %
  342.53
    6.0 %
  269.24
    3.2 %
2000
3,208,546
2.1
2,600,330
5.2
81.0
3.1
  366.08
6.9
  296.69
10.2
2001
3,213,460
0.2
2,267,472
(12.8)
70.6
(12.9)
  323.96
(11.5)
  228.59
(23.0)
2002
3,402,140
5.9
2,473,393
9.1
72.7
3.0
  310.67
(4.1)
  225.86
(1.2)
2003
3,443,161
1.2
2,550,952
3.1
74.1
1.9
  303.06
(2.4)
  224.53
(0.6)
Average Annual Compounded Change:
    2.4 %
    0.7 %
    (1.7) %
    (1.3) %
    (3.0) %
Source: Smith Travel Research
*Some figures may be subject to small rounding errors
** Statistics based on selected hotels from a large database

Boutique

Year Supply % Change Demand % Change Occupancy % Change ADR % Change RevPAR % Change
1998
1,423,902
---
1,015,856
---
    71.3 %
---
$216.70
---
$154.60
---
1999
1,436,540
    0.9 %
1,133,123
    11.5 %
78.9
    10.6 %
  240.37
    10.9 %
  189.60
    22.6 %
2000
1,639,091
14.1 
1,340,978
18.3 
81.8
3.7 
  264.12
9.9 
  216.08
14.0 
2001
2,116,690
29.1 
1,487,760
10.9 
70.3
(14.1)
  223.84
(15.3)
  157.33
(27.2)
2002
2,323,297
9.8 
1,714,633
15.2 
73.8
5.0 
  215.16
(3.9)
  158.79
0.9
2003
2,318,845
(0.2)
1,733,837
1.1 
74.8
1.3
  215.34
0.1
  161.01
1.4 
Average Annual Compounded Change:
    10.2 %
    11.3 %
    0.9 %
    (0.1) %
    0.8 %
Source: Smith Travel Research
*Some figures may be subject to small rounding errors
** Statistics based on selected hotels from a large database

First-Class

Year Supply % Change Demand % Change Occupancy % Change ADR % Change RevPAR % Change
1998
6,832,435
---
5,610,514
---
   82.1%
---
$209.44
---
$171.98
---
1999
6,894,146
    0.9 %
5,558,280
    (0.9) %
80.6
    (1.8) %
  218.11
    4.1 %
  175.85
    2.2 %
2000
7,211,966
4.6 
6,060,832
9.0 
84.0
4.2 
  231.18
6.0 
  194.28
10.5 
2001
7,223,057
0.2
5,539,796
(8.6)
76.7
(8.7)
  203.95
(11.8)
  156.42
(19.5)
2002
7,238,246
0.2
5,602,482
1.1 
77.4
0.9
  193.55
(5.1)
  149.81
(4.2)
2003
7,623,793
5.3 
5,921,303
5.7 
77.7
0.3
  186.20
(3.8)
  144.62
(3.5)
Average Annual Compounded Change:
    2.2 %
    1.1 %
    (1.1) %
    (2.3) %
    (3.4) %
Source: Smith Travel Research
*Some figures may be subject to small rounding errors
** Statistics based on selected hotels from a large database

Other

Year Supply % Change Demand % Change Occupancy % Change ADR % Change RevPAR % Change
1998
4,582,296
---
3,883,954
---
   84.8 %
---
$139.90
---
$118.58
---
1999
4,973,157
     8.5 %
4,106,645
    5.7 %
82.6
    (2.6) %
  146.64
    4.8 %
  121.09
    2.1 %
2000
5,098,494
2.5 
4,318,186
5.2 
84.7
2.6 
  157.32
7.3 
  133.24
10.0 
2001
5,145,757
0.9
3,845,982
(10.9)
74.7
(11.8)
  138.98
(11.7)
  103.87
(22.0)
2002
5,199,243
1.0 
3,869,231
0.6
74.4
(0.4)
  124.61
(10.3)
   92.73
(10.7)
2003
5,214,455
0.3 
3,903,231
0.9
74.9
0.6
  122.00
(2.1)
  91.32
(1.5)
Average Annual Compounded Change:       2.6 %
    0.1 %
(2.5) %
    2.7 %
    (5.1) %
Source: Smith Travel Research
*Some figures may be subject to small rounding errors
** Statistics based on selected hotels from a large database

Stephen Rushmore
President and Founder,
HVS International

HVS International recognizes that the tourism industry is a prime economic generator for New York City. The year 2003 ended on an extremely positive note for the Manhattan lodging sector. Though the first six months of the year were severely impacted by the adverse effects on travel due to the war in Iraq and global uncertainty, demand levels started rising in June. Overall occupancy increased from four to six percent in each month through the end of the year. Based on the market�s strong fourth quarter results, an overall improved economic climate, and the expected year-over-year growth in the first four months of 2004, we forecast that the Manhattan lodging market will achieve robust growth in 2004. As the national economy continues to recover, we project that by 2006, NYC�s occupancy will achieve close to 1999 levels, and average rate will return to 2000 levels.

Real estate developers remain optimistic toward the Big Apple. Its diverse neighborhoods continue to thrive, reaping the benefits of additional tourist visitation to new hotel properties, including the Mandarin Oriental Hotel in the Time Warner complex, the Hotel Gansevoort in the meatpacking district, and The Alex on the east side of Midtown Manhattan, among others.

New York City is looking forward to welcoming delegates to the Republican National Convention this summer. This particular event will reaffirm to the international community that the city is the most exciting destination for business and recreational travel in the world.

A review of the previous tables reveals the following.

  • The boutique segment registered the strongest growth in supply from 1998 through 2003, increasing at an average annual compounded rate of roundly 10.0%. All remaining segments exhibited similar supply increases ranging from 2.0% to 3.0%.
  • Despite significant increases in supply, the boutique segment was the only category to show a positive average annual compounded growth both in terms of occupancy and RevPAR, during the historical period reviewed.
  • The boutique segment has shown stronger and earlier signs of recovery than the other segments, as evidenced by the positive RevPAR growths in 2002 and 2003.

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