Hotel brokers predict that New York City hotels will continue to perform better in occupancy and rate growth than lodging properties in other parts of the nation. CBRE Econometric Advisors projects that the New York area's occupancy rate will rise by 0.6% to 81% in 2012. The national rate will remain the same at 65.9 per cent. According to the research unit of CBRE Group Inc., the average price per room ($472,489) paid for Manhattan hotels in 2011 was already a 35% increase over the previous year's average.
REIT stocks have rebounded from their previous precarious state. REITs will regain their former fervour in the hotel acquisitions market – especially by the second half of this current year. According to Bradley Burwell, a CBRE senior associate specializing in hotels, REITs will be back in a "very heavy buying mode" by that time.
The CBRE report forecasts that the average daily hotel rate in the New York area will rise by 4.5% to $243 in 2012. Revenue per available room will increase 5.4% to $197. Both the national average room rate and revenue per available room will both rise by 3.8 percent.
NYC Hotel Purchases In 2011 Included: