December 13, 2004
Hotel rates to jump 14 pct in NYC in 2005, study predicts
New York City will lead the nation next year in hotel rate increase, according to a prediction from two research firms carried in Hotel News Resource.
The researchers see a 3.7 percent increase in room rates by the end of 2004 for the Top 50 hotel markets in the United States, followed by a 4.7 rise next year. But for New York, it predicts a 13.7 percent spike in 2005, bringing the daily room rate to $236.97 -- by far the highest in the country. "Occupancy levels in New York City have broken through the 80 percent barrier this year, thus making rooms not only more expensive, but also harder to come by," noted John Fox, PKF Consulting’s practice leader in New York. Based on data compiled by Smith Travel Research, room rates for all chain-affiliated hotels in New York City increased by approximately 10.2 percent through the first nine months of 2004. By year-end, PKF/TWR forecasts hotel prices will end up 9.3 percent above their 2003 level. New York City occupancies will reach 82.6 percent this year and will climb to 84.0 percent in 2005. If it makes you feel any better, the report notes that U.S. hotel room rates fell 6.4 percent between 2000 and 2003.
December 13, 2004 05:27 PM in Hotelology
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