The Manhattan hotel market had a strong and encouraging year in 2011, and its 84 percent occupancy rate showed that the market can take in additional inventory in the coming years, according to a recent report released Monday by CBRE.
Investment sales for hotels also rebounded markedly in 2011, more than doubling its sales numbers from the previous year. 27 hotels traded for a total of $3.8 billion, according to the report.
“Manhattan hotel investment sales rebounded significantly in 2011, and 2012 is expected to be a strong year as well,” said Bradley Burwell, a senior associate of CBRE Hotels, in a statement released today.
New York City also added more than 4,100 hotel rooms in Manhattan in 2011. Last year, Mayor Mike Bloomberg announced that the city reached a record 90,000 hotel rooms by year’s end, a 24 percent increase from the previous year.
In other findings from the report:
- Manhattan hotel capitalization rates should hover around historically low levels while investor demand continues to grow.
- The hotel occupancy rate in New York will increase by 60 basis points to 81 percent, compared to 65.9 percent for the rest of the country’s hotels.
- The Average Daily Rate for a hotel room will increase by 4.5 percent to $243.