A weakening New York hotel market hurt Marriott’s earnings in the second quarter, but analysts are hoping slowing supply growth will boost the industry.
Between 2014 and 2016, the number of hotel rooms in New York rose 4.8 percent per year, according to figures from hotel data analysis firm STR. But STR expects that growth rate to fall to 3.7 percent this year and 3.3 percent next.
“We do expect to see some more positive performance in hopefully the next 18 months or so,” STR’s Joseph Rael told Bloomberg.
Marriott’s revenue fell to $102 million in the second quarter, down from $115 million a year earlier, Bloomberg reported. And not while the market may improve slightly, it’s still in rough waters.
“New York will continue to be a tough market,” MKM Partners analyst Christopher Agnew told Bloomberg, pointing to growing supply.
Room rates in the city declined by 1.8 percent in the first half of the year, according to STR. [Bloomberg via Crain’s] — Konrad Putzier