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KALIBRI LABS Market Spotlight: NEW YORK, NY

6 August 2020
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Each week we will be shining a spotlight on a different U.S. market to better understand both the impact of the COVID 19 pandemic as well as progress of the ongoing recovery.

Observations:

NYC is arguably the most unique hotel market in the US for reasons ranging from the mix of hotels available as well as the diverse nature of its customers. It typically has very high occupancies and one of the highest Guest Paid ADR’s in the country. 2019 was no exception here with market wide occupancies over 87%. Despite that level of demand, Guest Paid ADR’s actually dropped last year, which, on some levels, seems extremely disappointing.

ADR declines were evident in all chain scales.

Unlike other major markets, chain scale occupancies in NYC were higher at the lower end of the market than for Luxury hotels. Perhaps this dynamic contributed to the market’s sluggish ADR performance.

With an extremely high percentage of international guests, NYC hotels are more dependent on OTA business than most US markets, which in 2019 represented almost 25% of all room revenue in NYC hotels, the most of any rate category.

With a high percentage of International travelers, NYC hotels reported both the highest booking lead time, at over 36 days, and one of the lowest percentages of Loyalty contribution (48.81% vs. 56.2% (U.S.)).

Read the full report here