|
Sean Hennessey , Lodging Advisors
of project costs , as well as make reasonable revenue projections upon project completion ,” he said , adding that while there is no shortage of inventory as of now , “ continued growth in tourism even beyond 2019 numbers will require a morerobust pipeline for the city to remain competitive in both the
|
transient and meetings market .” Still , this year he expects to see RevPAR growth due to both the inventory constraint from migrant housing in hotels and an increased number of visitors .
CoStar data forecasts a slowing in 2024 of occupancy , ADR and RevPAR growth compared to 2023 . Year-overyear percentage changes for occupancy in 2023 show a gain of 8.6 %, dropping to only a 3.2 % gain this year . ADR enjoyed a 6.3 % gain last year , with a 2.5 % gain expected for 2024 . And RevPAR growth is forecast to slow considerably , with almost a 10 % drop from 15.5 % last year to 5.8 % this year .
|
For his part , Hennessey is anticipating mid-double-digit demand growth , with supply growth of around 10 %, putting upward pressure on occupancy . “ So , we should see occupancy in the 84 % to 85 % range where it has been for two decades now ,” he said .
“ New York will always have challenges and doubters . But even the predictions of two years ago that it would not recover from the ‘ work remotely ’ mindset are being proven wrong as demand for hotels and apartments has strongly improved ,” Hennessey continued . “ There are many potential positives in the offing :
|
casino gaming , a new Gateway tunnel that will greatly improve accessibility and improvements to New York ’ s port facilities that will improve the region ’ s commercial competitiveness .”
A longtime New Yorker , Hennessey has loads of city memories to refer to . “ As someone old enough to remember the 1970s tabloid headline ‘ Ford to City : Drop Dead ,’ I remain convinced that New York will be able to retain its position as one of the world ’ s cultural and financial capitals for decades to come ,” he said . “ This strength will also foster a vibrant and healthy hotel sector .”
|