NEW YORK PKF Consulting reported that hotels in New York City achieved an average occupancy rate of 74.5% in the first four months of 2001. John Fox, svp of the international hotel and real estate consulting company, stated that, while this occupancy level is substantially below the level of a year ago, it still represents a very healthy market. Occupancy for the first four months of 2000 was 81.9%, which was a record high level, according to PKF Consulting.
The lower occupancies are the result of a decrease in business travel and an increase in hotel supply, according to PKF. In calendar 2000, Manhattan added a net of about 3,000 new rooms, representing a 5% increase in supply.
In addition, for the month of April 2001, Manhattan hotels achieved rates of $219.27, 2.5% below those of April 2000 when the average was $225.00.
This is the first such decrease we have seen since July 1992, reported Fox. (5/31/01)