What’s Going on with Hotel Rates in New York City? During the most recent Americas Lodging Investment Summit in Los Angeles, one question came up again and again in the halls of the conference: “What do you think is going on in New York City?”
Last year, market-wide, the average daily rate increased “only” 1.8 percent; December revenue per available room declined 0.4 percent; and the research firm STR’s most recent pipeline report counts 13,000 rooms under construction, so there is a bit of trepidation surrounding the 2015 market performance.
Part of what spurred the question is the following table showing absolute levels of occupancy for San Francisco and New York City for the full-year 2014 with the corresponding ADR growth:
|San Francisco/San Mateo, Calif.||84.10%||10.90%|
|New York City||84.80%||1.80%|