58% of Manhattan room inventory remain closed

The COVID-19 pandemic continued to severely impair Manhattan hotels in the second quarter, as travel restrictions and business closures remained the new normal.

58% of Manhattan room inventory remain closedWith over 60,000 hotel rooms currently closed, widespread cancellation of group travel, and heightened economic uncertainty, second quarter revenue per available room (“RevPAR”) experienced a year-over-year decline of 81.6%. This represents the largest decline in RevPAR in modern history for the market.

Unprecedented closures continue to impact Manhattan hotels

Six months since the start of the COVID-19 pandemic, Manhattan’s lodging sector continues to experience record closures. As of early September, approximately 61,450 hotel rooms (representing 58% of total inventory) in Manhattan were closed, with approximately 2,700 rooms reporting to stay closed permanently. It’s not surprising that, given their operating cost structure, higher-priced hotels are disproportionately impacted.

Luxury and Upper Upscale class hotels are the most impacted, with 70% or more of hotel rooms in each of these segments closed. Upper upscale hotels are experiencing the highest levels of permanent closures. On the other hand, lower-priced hotels have been relatively less impacted, driven by a combination of factors, including a comparatively lower operating cost structure.

Advertisement

Download Manhattan Lodging Index: Q2 2020

Advertisement
Appropriate testing protocols a must or U.S. economy will lose $155B
Domestic tourism will drive economy recovery globally
Menu