NEW YORK -- Hotels in the Big Apple had a banner year in 2000,
recording their highest occupancy in more than a half-century and
their highest-ever average daily room rate, according to a study by
Occupancy at the approximately 100 hotels sampled was 84.6% last
year, up from 81.2% in 1999. It was the highest annual occupancy
for Manhattan hotels in more than 50 years, PKF said.
The business and leisure travelers who fueled the record
occupancy were charged an average of $237.16 per room, up 7.5%
compared with 1999. The room rate contributed to a revenue per
available room increase in 2000 of 12% compared with 1999, PKF
However, there were signs late last year that the hot hotel
market was cooling down.
Occupancy was down month-over-month in October and November, and
the average daily room rate in December was down 2.6% compared with
1999, PKF said.
The firm attributed October and November's occupancy drop and
December's room rate dip to a slowing national economy and
competition from the approximately 11 new hotels with more than
3,000 rooms that were added last year.
The "unparalleled" levels of prices and occupancy during the
first three quarters of 2000 was a "very difficult trend to
maintain for a sustained period," PKF said.
The firm predicted that New York's hotels this year will see a
"softening in occupancies," primarily in the first quarter,
compared with last year, although it said room rates will
New York expects to add 1,700 hotel rooms this year, bringing
the inventory to approximately 69,000 rooms.