The NYC hotel industry is showing signs of life as the pace of vaccinations in the metro area quicken and federal stimulus funds shore up the sector.
A new report from CBRE predicts an average occupancy level of 43.3% during the first half of this year, an increase from the 35% recorded in 2020, and a 74.3% occupancy rate, on average, for 2022. A return to normal is within sight, with CBRE analysts forecasting 86.4% occupancy by 2025.
The Average Daily Rate should increase by 21.2% this year and by 26.1% next year, according to the report, while revenue per available room (RevPAR) is predicted to increase by 50.1% this year and by 116.3% in 2022. Many properties in the New York City area should see RevPAR gains of more than 50% during 2021, and demand increases by more than 30%. (By comparison, demand decreased by 59.5% in 2020.)
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