2006 Was Tops For Manhattan
2006 was the best year ever in the history of the Manhattan hotel industry. According to a new report from Hotel Investment Strategies, the borough's properties topped the $200 RevPAR mark for the first time ever and, when adjusted for inflation, eclipsed the previous RevPAR record set in the heyday year of 2000.
The market posted spectacular results in two important operating measurements: occupancy, which was up a half percentage point to 85.5 percent; and RevPAR, which soared 11.2 percent to $220.
But according to the report, the best is yet to come. Even though 3,700 additional rooms will enter the market in the next three years, occupancy should only dip slightly, down to 85.3 percent this year. Also, ADR will grow by 6.5 percent to $273 and RevPAR will rise to $233 by the end of the year.
One hotbed of hotel development activity is Lower Manhattan, which has nearly two dozen lodging projects in some stage of development. The neighborhoods currently has nine hotels and 2,197 rooms.
The range of projects under consideration extends from standalone limited-service hotels to mixed-use complexes that combine condos, restaurants, retail and lodging.
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