Will increase in occupancy, ADR and income per accessible room (“RevPAR”) continued to speed up throughout Manhattan through the first half of 2022. Q2 RevPAR skilled a year-over-year enhance of 166.8 p.c, with the strongest good points in April, which skilled a year-over-year enhance of 220.4 p.c. Q1 RevPAR was additionally up 135.7 p.c from the identical interval in 2021.
“Manhattan inns are lastly experiencing a sustaining restoration. Whereas RevPAR was nonetheless down 11.7% in 1H 2022 from the identical interval in 2019, it was a major enchancment from a yr in the past, when RevPAR throughout 1H was down 57.2% from the identical interval in 2019. The lifting of COVID-19 pre-departure testing is anticipated to positively impression inbound worldwide journey for the second half of this yr in Manhattan.” — Warren Marr, Managing Director, PwC
RevPAR elevated 166 p.c year-over-year through the second quarter of 2022. Occupancy and common day by day charge (“ADR”) surged as each group and summer time leisure journey started to re emerge and pandemic-related journey restrictions have been softened. Yr-over-year will increase in occupancy have been highest in April – up 70.3 p.c. With total occupancy for the quarter at 81.3 p.c and ADR at $314.54, Manhattan RevPAR greater than doubled from $95.81 in Q2 2021 to $255.61 in Q2 2022.
Of the 4 market lessons tracked, higher upscale properties exhibited essentially the most notable year-over-year enhance in RevPAR – up 201.5 p.c for the quarter, pushed by an 84.3 p.c enhance in occupancy from 43.1 p.c in 2021 to 79.5 p.c, and a 63.6 p.c enhance in ADR from $185.13 to $302.80. For upscale properties, occupancy grew by 45.7 p.c and ADR skilled a rise of 86.8 p.c, leading to a year-over-year RevPAR enhance of 172.2 p.c.
Luxurious and higher midscale properties posted decrease, however nonetheless important will increase in RevPAR of 105.9 and 130.3 p.c, respectively. With the luxurious phase posting a lowest enhance in ADR – up 16.4 p.c, and the higher midscale phase posting the bottom enhance in occupancy – up 32.1 p.c, RevPAR completed the quarter at $432.75 and $185.62, respectively.
Of the 5 Manhattan neighborhoods, Midtown East had the biggest enhance in RevPAR – up 234.4 p.c, pushed largely by a 92.4 p.c enhance in occupancy yr over-year. Midtown West RevPAR grew by 193.0 p.c, largely pushed by an 82.6 p.c enhance in ADR. Decrease Manhattan and Midtown South posted RevPAR will increase of 147.1 and 162.7 p.c, respectively. Higher Manhattan had the smallest enhance in RevPAR – nonetheless up a major 90.4 p.c.
Through the second quarter, occupancy at full-service inns elevated at virtually twice the speed of limited-service inns, with year-over-year will increase in occupancy of 63.4 and 34.3 p.c, respectively. RevPAR elevated 171.9 p.c for full-service properties, whereas limited-service inns noticed a rise of 141.8 p.c over the identical interval.
For chain-affiliated and unbiased inns, second quarter RevPAR grew by 180.9 and 144.3 p.c, respectively. The advance in chain-affiliated inns was primarily pushed by a stronger enhance in ADR – up 83.1 p.c.
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