Manhattan hotel sales strong, will stay steady
Limited service hotels gaining on full-service, CBRE report says
Manhattan hotel investment sales were strong in 2011 and are projected to remain strong in 2012, according to CBRE’s winter 2012 snapshot, released today. Limited-service and focused-service hotels that are part of “internationally recognized brands” have posted particularly strong performance, the report says.
In 2012, average daily rates for hotels in the New York-metro region will increase 4.5 percent, to $243, and revenue per available room, or revpar, will increase 5.4 percent, to $197. And as capital markets continue to improve, hotel investment sales will also improve, the report says.
The number of limited-service hotels has grown, the report shows, to 20 percent of the total inventory in Manhattan, up from 17 percent in 2006. In addition, the gap betweeen average daily rates for full-service and limited-service hotels has narrowed — to 18 percent in 2011 from 23 percent in 2007. The report also says that “there is little difference in Manhattan between full-service and limited-service occupancy rates.”
“Fundamental lodging performance remains strong, and despite the addition of more than 4,100 units in Manhattan in 2011, occupancy remained constant at 84 percent, clearly showing that the city can continue to absorb new supply,” said Bradley Burwell, a senior associate at CBRE Hotels. — Guelda Voien