Average daily rate and occupancy in Manhattan in the fourth
quarter once again increased sharply, according to a PwC report, but the firm
suggested the red-hot lodging market is on “a path towards stabilization.”
Fourth-quarter Manhattan occupancy increased 4.2 percent
year over year to 86.1 percent, according to PwC’s Manhattan Lodging Index, released
Monday, and ADR increased 6 percent to $390.18. Revenue per available room
increased 11.5 percent to $336.14. Though sharp, this represents decelerating
growth from prior quarters, according to PwC.
“While return to office and resultant office vacancies
remain a concern as it relates to continued growth in individual business
travel, minimal hotel room supply additions over the next several years should
benefit existing hotels and increasingly result in price compression in the
market,” PwC U.S. hospitality and leisure managing director Warren Marr
said in a statement.
