Will increase in occupancy, ADR and income per obtainable room (“RevPAR”) continued to speed up throughout Manhattan through the first half of 2022. Q2 RevPAR skilled a year-over-year enhance of 166.8 %, with the strongest positive factors in April, which skilled a year-over-year enhance of 220.4 %. Q1 RevPAR was additionally up 135.7 % from the identical interval in 2021.
“Manhattan resorts are lastly experiencing a sustaining restoration. Whereas RevPAR was nonetheless down 11.7% in 1H 2022 from the identical interval in 2019, it was a big enchancment from a yr in the past, when RevPAR throughout 1H was down 57.2% from the identical interval in 2019. The lifting of COVID-19 pre-departure testing is anticipated to positively impression inbound worldwide journey for the second half of this yr in Manhattan.” — Warren Marr, Managing Director, PwC
RevPAR elevated 166 % year-over-year through the second quarter of 2022. Occupancy and common each day charge (“ADR”) surged as each group and summer season leisure journey started to re emerge and pandemic-related journey restrictions have been softened. Yr-over-year will increase in occupancy have been highest in April – up 70.3 %. With total occupancy for the quarter at 81.3 % and ADR at $314.54, Manhattan RevPAR greater than doubled from $95.81 in Q2 2021 to $255.61 in Q2 2022.
Of the 4 market courses tracked, higher upscale properties exhibited probably the most notable year-over-year enhance in RevPAR – up 201.5 % for the quarter, pushed by an 84.3 % enhance in occupancy from 43.1 % in 2021 to 79.5 %, and a 63.6 % enhance in ADR from $185.13 to $302.80. For upscale properties, occupancy grew by 45.7 % and ADR skilled a rise of 86.8 %, leading to a year-over-year RevPAR enhance of 172.2 %.
Luxurious and higher midscale properties posted decrease, however nonetheless important will increase in RevPAR of 105.9 and 130.3 %, respectively. With the luxurious section posting a lowest enhance in ADR – up 16.4 %, and the higher midscale section posting the bottom enhance in occupancy – up 32.1 %, RevPAR completed the quarter at $432.75 and $185.62, respectively.
Of the 5 Manhattan neighborhoods, Midtown East had the biggest enhance in RevPAR – up 234.4 %, pushed largely by a 92.4 % enhance in occupancy yr over-year. Midtown West RevPAR grew by 193.0 %, largely pushed by an 82.6 % enhance in ADR. Decrease Manhattan and Midtown South posted RevPAR will increase of 147.1 and 162.7 %, respectively. Higher Manhattan had the smallest enhance in RevPAR – nonetheless up a big 90.4 %.
In the course of the second quarter, occupancy at full-service resorts elevated at virtually twice the speed of limited-service resorts, with year-over-year will increase in occupancy of 63.4 and 34.3 %, respectively. RevPAR elevated 171.9 % for full-service properties, whereas limited-service resorts noticed a rise of 141.8 % over the identical interval.
For chain-affiliated and impartial resorts, second quarter RevPAR grew by 180.9 and 144.3 %, respectively. The development in chain-affiliated resorts was primarily pushed by a stronger enhance in ADR – up 83.1 %.
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