Hotel industry, commercial development set back by Hurricane Sandy

TRD New York /
Oct.October 31, 2012 09:30 AM

While hotels throughout the city sold out during Hurricane Sandy, the overall hospitality industry is suffering from the storm  — and that stands to negatively impact new commercial development.

According to Bloomberg News, U.S. revenue per available room, an industry measure of occupancy and rates, is now expected to grow 5 percent to 5.5 percent in the fourth quarter. Prior to the storm, industry analysts had been expecting revenue to grow 6 percent, Nikhil Bhalla, a senior lodging analyst at Virginia-based FBR & Co., told Bloomberg.

Growth was “generally soft through the first three weeks of the month,” before Sandy hit, Bhalla said. “So I expect results for the last week of October to be notably soft.”

Companies with large portfolios in the Northeast — Starwood Hotels & Resorts Worldwide; the real estate investment trust Host Hotels & Resorts, owner of the Westin New York Grand Central; and Hilton Times Square landlord Sunstone Hotel Investors, among them — are expected to suffer the most from storm damage or lost revenue.

Hotels in New York, Boston and Washington account for approximately 10 percent to 12 percent of all U.S. lodging revenue, meaning property damage and lost revenue caused by Sandy could have a ripple effect on commercial property across the nation. [Bloomberg]Christopher Cameron

 

Related Articles

arrow_forward_ios
(iStock)

Half empty or half full? Hotel occupancy rate nears 50%

Half empty or half full? Hotel occupancy rate nears 50%
The W Hotel at 8 Albany Street (Google, Facebook)

W Hotel in downtown Manhattan closes forever

W Hotel in downtown Manhattan closes forever
Robert De Niro and 377 Greenwich Street (Getty, Google Maps)

Robert De Niro says Nobu, Greenwich Hotel are struggling

Robert De Niro says Nobu, Greenwich Hotel are struggling
The economy beat expectations in June, adding 4.8 million jobs, with retail and hospitality leading the way. But a surge in coronavirus infections threatens further gains. (Getty)

Retail and hospitality led June job gains as virus surged

Retail and hospitality led June job gains as virus surged
Alex Sapir with the NoMo Soho hotel at 9 Crosby Street (Nomo Soho)

Sapir Corp’s earnings highlight challenges facing NYC hotels

Sapir Corp’s earnings highlight challenges facing NYC hotels
The rate of job loss in America has stabilized, even though businesses continue to hemorrhage employees at unprecedented levels. (iStock)

Unemployment filings stabilize — but at record highs

Unemployment filings stabilize — but at record highs
GFI Capital CEO Allen Gross and the James Hotel at 22 East 29th Street (Google Maps)

GFI Capital takes majority stake in James Hotel in $110M deal

GFI Capital takes majority stake in James Hotel in $110M deal
Federal Reserve Chairman Jerome Powell (Getty, iStock)

Real estate stocks outperform broader market but still sink

Real estate stocks outperform broader market but still sink
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...