Marriott received a lot of bad news in Q2, but things could be looking up in NYC

Analysts point to slowing hotel supply growth

TRD New York /
Aug.August 09, 2017 09:05 AM

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 


Related Articles

arrow_forward_ios
(iStock)

Who’s returning to the office? Almost no one

Who’s returning to the office? Almost no one
Joe Moinian and 123 Linden Blvd. (Moinian Group)

These were the top outer borough loans in July

These were the top outer borough loans in July
Clipper Equity's David Bistricer (REIT)

David Bistricer’s Clipper Realty reports record Q2 profit

David Bistricer’s Clipper Realty reports record Q2 profit
Vornado CEO Steven Roth and a rendering of the Farley Post Office building (Getty, iStock, SOM)

Vornado will install facial recognition tech in all its buildings

Vornado will install facial recognition tech in all its buildings
(iStock)

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

Half empty or half full? Hotel occupancy rate nears 50%
28 Liberty Street (Wikipedia)

Manhattan’s office leasing sees busiest month since January

Manhattan’s office leasing sees busiest month since January
Maison Kayser (Photo via Tools of Men via Flickr)

Maison Kayser may bid New York adieu

Maison Kayser may bid New York adieu
Newmark’s Brian Waterman with 7 Hanover Square (Google Maps, Twitter)

Newmark nabs REBNY prize for deal with NYC Health + Hospitals

Newmark nabs REBNY prize for deal with NYC Health + Hospitals
arrow_forward_ios

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

Loading...