NEW YORK -- The average daily rate for a hotel room in Manhattan
was a record $213.83 last year, up 10.9% compared with 1997,
according to PKF Consulting.
In December, a month when the cost of a hotel room in the city
traditionally runs higher than any other time of year, the average
daily room rate was a record $249.81, up 9.6% from 1997, PKF said.
Not surprisingly, the city's hotels posted record room revenues,
with 70 of the 79 hotels in a survey reporting room revenue growth
for the year, PKF said.
For the year, hotel occupancy was 81.3%, down almost one
percentage point from 82.2% in 1997, PKF said. Even with the
overall slight decrease in the occupancy level, 47 of the 79 hotels
in a sample, or 59%, recorded increased occupancy, PKF said.
For 1999, PKF said it projects that room rates will increase
about 7% compared with last year, while occupancy levels should
remain the same. "The basic dynamics of the New York City market --
strong demand generated by business, tourist and group travelers,
together with only limited additions to the supply of rooms --
should keep the occupancies and rates at those ranges," PKF