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Optimism abounds about the New York City hotel industry. The buzz about the business of Manhattan hotels is not just made up of empty words. Four fundamental reasons provide the basis of the excitement around the thriving hotel industry in the Big Apple.

Reasons for Optimism about New York City Hotels

1. Statistics show the overall popularity of U.S. hotels.

At the ALIS conference near the end of January, Smith Travel presented their 2010 overview results. As well, they declared their predictions for 2011-2012 in the U.S. hotel industry. The study contained impressive figures.

In fact, the 2010 review noted that 52,000 U.S. hotels added up to a room supply of 1.7 billion rooms – and a 2% rise in supply since 2009. Although the figures across the country look promising, the highest performers will be in major centers such as New York City.

2. There is a staggering demand for New York City hotel rooms.

During 2010, investors saw the rate of demand rise 7.8% for U.S. hotel rooms. Considering last year's transaction numbers and new hotel developments, guests experienced no shortage of 'places to stay' in the US. Yet due to the growing number of hotel rooms, occupancy increased just 5.7% to 57.6% - lower than the preferred 60%.

Within thriving centers, occupancy rates were higher - even reaching 88.4% in New York City. Smith Travel noted that 2011 and 2012 growth is not expected to exceed 2010 levels. Yet demand growth will be almost 2% each year. Of course, industry officials do not expect to see a similar rise to 2010 levels in the near future.

3. Strong ADR and RevPAR growth are predicted for 2011-2012 in U.S. hotels.

During 2010, the average daily rate (ADR) across the country did not grow in dramatic proportions compared to demand rates. Actually, ADR was flat (in fact, down) at $98. Keep in mind that $100 is a favorable number for ADR. Yet 2011 and 2012 are expected to have strong RevPAR and ADR rates.

RevPAR rose 5.5% in 2010 to $56.50 and room revenues increased 7.6% to $99.5 billion. When the U.S. hotel industry improves, places like New York City improve even more. TOP Hotel Brokers of NYC made reference to this fact in their December 2010 report - "Buying Hotel Growth in NYC - Investors' Strategy for Growth - Manhattan Hotel Real Estate."

"The RevPAR is measured for 50 U.S. hotels used in PKF-HR statistics. Of course, New York is the star of this show. If New York City is removed from the equation, the RevPAR forecast drops from 6.4%-5.4%." ~ "Buying Hotel Growth in NYC - Investors' Strategy for Growth - Manhattan Hotel Real Estate."

4. The STR Chain Scale Outlook predicts positive changes.

The STR Chain Scale Outlook suggests improvements in the NYC hotel market on different levels. This encouraging prediction indicates a rise in occupancy, ADR, and RevPAR for varied hotel brands. STR mentions hotels from economy to luxury brands.

New York City offers all types of accommodations including 'midscale' and 'upper upscale' hotels. The Big Apple is in a perfect position to shine in the coming year. The fundamentals point to plenty of reasons to be optimistic about NYC hotels.

Hotel Lawyer: How improving fundamentals make 2011 the year of "Great Expectations" for the Hotel Industry