NYC TO PERMANENTLY LOSE 20 PERCENT OF ITS HOTEL ROOMS

As New York City’s hotels begin to reopen after being shut for more than three months, about 25,000 rooms – roughly 20 percent or one in five – will never see another guest, according to interviews with hotel owners and a consensus among analysts.

The 17-floor Blakely New York hotel had filed papers with the state in January, warning it might close this year; the Hilton Times Square may see a loss of as much as $8 billion this year and owner Sunstone Hotel Investors has said the hotel might enter receivership.

Hotel-night prices in the city had been falling due to competition sparked by an oversupply of rooms, foreshadowing a shakeout even before travel bans and the economic shutdown were imposed.

New York added 15,000 hotel rooms since 2015, with 4,000 more in development this year and another 6,000 that had been planned for 2021.

The city’s hotel industry is likely to take years to recover its 2019 levels of trade, analysts say. Broadway theaters may remain closed until 2021, international travelers are expected to be cautious in resuming trips, and business travel has been curtailed by the damaged economy.

The city’s room occupancy rate was 47.1 percent during the week ending 6 June, barely half of the 90 percent of rooms in use a year earlier but far above the 19.6-percent rate in early April.

 

5 Comments
  1. Jay Jericho 2 weeks ago

    Somehow it’s possible that New York City may have peaked in terms of residents (exodus), GDP $ and these sorts of indicators. It is still a great city. It’s just hard to imagine that a city that relied heavily on a ponzi scheme financial capital can make it back. And all those people who serve the financial sector: caterers, hotels, cleaners, carpenters etc. 17 is the number it seems.

  2. Peter Gadaleta 2 weeks ago

    NYC is losing population. Immigration is no longer replacing the natives who are leaving in droves.

  3. DRW 2 weeks ago

    One could assume, the reduction must please Warren Wilhelm.

  4. Craig Bradley 1 week ago

    2020 Census Results Should Tell us What’s Really Going-On

    Same situation in California. The 2020 census and reapportionment of Congressional seats will give us the state and city population facts in a few years once the data is tabulated and summarized. Until then, we have many opinions and perceptions. Some say its still growing, others say many are leaving for warmer climates or more tax friendly states/jurisdictions. Its not simple to figure out the overall picture just from where you stand. There are always people coming and going. What is the makeup of those leaving vs. new arrivals? What is their income and how much state income taxes do they pay, if any? Details, details.

Leave a reply

©2020 The Trends Journal

Log in with your credentials

Forgot your details?