Horwath Market Report: Manhattan - By Paul Breslin (PDF Download)
Clearly NYC has been in the news all year, “decelerating Revpar”, “adverse supply growth”, and of course the ever growing buzz of Airbnb. The city that never sleeps may absorb the new supply and have a rebound sooner then we think, or will the demand slow and supply increase even more? Will the demand continue to grow?
The Horwath HTL NYC 2016 mid year market update may surprise you.
Hospitality Market Overview
• Strong supply growth continued during the rst half of 2016, outpacing demand growth, which contributed to the decline in RevPAR.
• New developments focus on independent and upscale sectors, which have already reached over half of the market share.
• The average price per unit in Manhattan market decreased and the average cap rate was 5.43% at the end of Q2 2016.
• Cross-border investments are major forces in Manhattan hotel market, representing 72% of the capital ows.
• By the end of 2016, the drop rate of occupancy is expected to slow down, driving up the ADR and RevPAR.
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