This quarter: Manhattan Statistics Office Market Air Traffic Statistics Transactions Openings and Closings Second quarter 2011

Transcription

1 Manhattan lodging index Second quarter 2011 This quarter: Manhattan Lodging Overview Employment Trends Gross Metro Product and Consumer Price Index Office Market Statistics Air Traffic Statistics Recent Manhattan Hotel Transactions Recent and Planned Hotel Openings and Closings Second Quarter Performance

2 Manhattan lodging overview

3 In the second quarter, Manhattan's average daily rate ("ADR") increased substantially, while occupancy levels declined, still resulting in a healthy increase in revenue per available room ("RevPAR") levels. During the second quarter of 2011, lodging supply growth in Manhattan continued to outpace demand, resulting in a 1.7 percent decline in occupancy levels to 87.2 percent. Despite this, Manhattan hotels continued to regain pricing power, resulting in a 9.2 percent increase in ADR. The combination of a continuing ability to charge higher room rates, despite decreasing occupancy levels, led to a 7.3 percent increase in RevPAR, compared to year-ago levels. Manhattan Q2 RevPAR growth by month 40.0% Apr May Jun 30.0% 20.0% 28.7% 23.5% 10.0% 12.6% 9.0% 6.3% 6.9% 0.0% -10.0% -20.0% 2009 to to 2011 Source: PwC, based on Smith Travel Research data On the basis of price segment, all segments experienced increases in RevPAR from yearago levels, driven by strong ADR increases. The upscale segment ended the second quarter with the highest growth in RevPAR, experiencing a 9.1 percent increase for the quarter, despite a decline in occupancy of 1.6 percent. The luxury and midscale segments experienced RevPAR increases of 9.0 percent and 6.0 percent, respectively, with the luxury segment being the only segment that experienced occupancy gains for the quarter. At the neighborhood level, all submarkets experienced growth in RevPAR, driven primarily by increases in ADR. Upper Manhattan led in RevPAR growth, experiencing a quarterly increase of 13.9 percent, compared to the same period in 2010, due to a 10.8 percent increase in ADR, coupled with a 2.8 percent increase in occupancy - the only sub market with occupancy gains for the quarter. Midtown South, Midtown West, Midtown PwC Page 1

4 East and Lower Manhattan all experienced growth in RevPAR, with increases of 5.7 percent, 5.4 percent, 5.1 percent and 2.0 percent, respectively, but declines in occupancy. Limited-service hotels beat full-service hotels in RevPAR growth, up 8.5 percent and 7.0 percent, respectively. Chain-affiliated hotels outperformed independent hotels in RevPAR growth, experiencing an 8.8 percent increase, compared to 5.3 percent for independent hotels. RevPAR growth for chain-affiliated and independent hotels was driven entirely by ADR, with both groups of hotels experiencing decreases in occupancy. Manhattan Q2 performance, 17-year trend $400 95% $350 90% ADR/RevPAR $300 $250 $200 $150 $100 85% 80% 75% 70% 65% 60% Occupancy $50 55% $ ADR RevPAR OCC 50% Source: PwC, based on Smith Travel Research data PwC Page 2

5 Employment trends PwC Page 3

6 According to the New York State Department of Labor, New York City's seasonally adjusted unemployment rate decreased to an average of 8.6 percent in the second quarter of 2011, down 10.4 percent from the same period last year. The trend of diminishing unemployment rates witnessed throughout 2010 and the first quarter of 2011, continued into the second quarter. New York State's seasonally adjusted unemployment rate averaged 7.9 percent in the second quarter of 2011, down 4.8 percent from the same period last year, the lowest rate since the first quarter of The average US unemployment rate during the second quarter of 2011 increased slightly from the first quarter, averaging approximately 9.2 percent. According to the New York State Department of Labor, for the twelve-month period ended June 2011, New York City's private sector employment increased by 51,400, or 1.6 percent, to 3,212,100. During the period, job growth occurred in educational and health services, which gained 23,700 jobs, professional and business services, which gained 21,300 jobs, leisure and hospitality, which gained 6,900 jobs, trade, transportation and utilities, which gained 6,600 jobs, and financial services, which gained 5,300 jobs. The four sectors that experienced job losses for this 12-month period were natural resources, mining and construction, which lost 5,000 jobs, manufacturing, which lost 3,300 jobs, other services, which lost 2,800 jobs, and information, which lost 1,300 jobs. New York City Unemployment for the 21-month period ended June % % Number of People Unemployed (thousands) % 6% 4% Unemployment Rate % 0 0% Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Number of People Unemployed Unemployment Rate Source: New York State Department of Labor PwC Page 4

7 Gross metro product and consumer price Index PwC Page 5

8 The US economic recovery accelerated in the second quarter, with US real gross domestic product ("GDP") increasing at a seasonally-adjusted, annualized rate of 1.0 percent, after a 0.4 percent increase in the first quarter. 1 While GDP growth accelerated, consumer spending, as measured by Personal Consumption Expenditures (PCE) decelerated sharply, increasing by only 0.4 percent in the second quarter, after a 2.1 percent increase in the first quarter, a potential concern for the lodging industry. At the local level, New York City's near-term outlook is positive, with the market showing signs of continued recovery. According to Moody's Economy.com, after growing by 1.0 percent in 2010, New York's gross metro product is expected to grow 2.6 percent in New York City's consumer price index ("CPI") increased by an average of 2.9 percent during the second quarter, lagging the increase in national CPI, which increased by 3.4 percent. Consumer price index 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% Jan '01 Jan '02 Jan '03 Jan '04 Jan '05 Jan '06 Jan '07 Jan '08 Jan '09 Jan '10 Jan '11 New York City MSA Inflation Estimates US Inflation Estimates Source: Bureau of Labor Statistics 1 Based on the most recent (second) estimate of GDP and National Income by the Bureau of Economic Analysis (BEA). Source: PwC Page 6

9 Office market statistics PwC Page 7

10 Manhattan's office market showed mixed results in the second quarter of 2011, as overall vacancy rates increased to approximately 7.9 percent, up 2.9 percent from year-ago levels, while gross asking rents in Manhattan also increased by approximately 22.0 percent to $55.14 per square foot, compared to the same period last year. In the second quarter, the Downtown sub-market's vacancy rate was 8.1 percent, down 0.3 percentage point from the same period last year, while the Midtown sub-market's vacancy rate was 7.8 percent, up 0.4 percentage point. During the second quarter of 2011, the Downtown submarket experienced gross asking rents of $37.24 per square foot, up 2.1 percent from the same period last year, while the Midtown submarket experienced gross asking rents of $61.57 per square foot, up 27.8 percent. Gross asking rents and vacancy rates $80 10% $70 9% $60 $50 $40 $30 $20 8% 7% 6% 5% 4% 3% 2% $10 1% $0 0% Gross Asking Rents ($/SF) Vacancy rates (%) Q Q Q Q Q Q Q Gross Asking Rents ($/SF) Vacancy Rate (%) Source: PwC, based on Torto Wheaton Research data According to Crain's New York, in April 2011, The American Association of Advertising Agencies signed a 15-year lease to rent 23,000 square feet of space at 1065 Sixth Avenue for a reported rent of $55 per square foot. Also in April 2011, Virtue, a social media software company, increased the size of their space more than five times, signing a fouryear lease to rent 8,000 square feet of space at 205 Lexington Avenue for a reported rent of $40 per square foot. In May 2011, British Airways signed a ten-year lease for 46,200 square feet of space at 2 Park Avenue for a reported rent of $50 per square foot. Growing private equity firm, Siguler Guff & Co. doubled its space in May 2011, signing an eightyear lease for 20,000 square feet of space for $49 per square foot at 825 Third Avenue. In June 2011, People's Insurance Company of China moved its US headquarters to 1251 Sixth Avenue, signing a seven-year lease to rent 1,200 square feet of space for a reported $80 per square foot. PwC Page 8

11 Paramount Group and Monday Properties & Invesco each acquired office buildings during the second quarter of According to Cushman and Wakefield, Paramount Group acquired a 49 percent interest in 1633 Broadway for approximately $980 million and Monday Properties & Invesco re-capitalized 230 Park Avenue for approximately $760 million. PwC Page 9

12 Air traffic statistics PwC Page 10

13 Continuing the trend seen in the first quarter of 2011, air traffic levels during the second quarter of 2011 increased approximately 4.1 percent from year-ago levels. The three major New York metropolitan airports - Newark Liberty International Airport, LaGuardia International Airport and John F. Kennedy International Airport combined to serve approximately 28 million passengers from April through June 2011, up from 26.9 million passengers from the same period a year ago. The growth in air traffic levels was partially driven by international passenger traffic, which increased approximately 5.8 percent to a level of approximately 9.7 million passengers, compared to approximately 9.1 million passengers during the same period last year. The following chart displays second quarter passenger traffic and growth over the past fourteen years. Q2 passenger traffic $35 20% $30 15% $25 10% Passengers (millions) $20 $15 5% 0% -5% Growth $10-10% $5-15% $ % Total Passengers Growth Source: Port Authority of New York and New Jersey PwC Page 11

14 Recent Manhattan hotel transactions PwC Page 12

15 Fourteen hotel transactions occurred between May and August in Manhattan. The 169- room Royalton was sold by a joint venture between Morgans Hotel Group and NorthStar Capital to Felcor Lodging Trust, Inc. for a reported transaction price of approximately $85 million. The 113-room Morgans Hotel was sold by the same joint venture to Felcor Lodging Trust, Inc. for a reported transaction price of approximately $53 million. The 712-room Radisson Lexington was sold by a joint venture between Blackstone, Highgate Holdings, Chartres Lodging Group, and Oxford Capital Group LLC to DiamondRock Hospitality Company for a reported transaction price of approximately $336 million. The 174-room Algonquin Hotel was sold by HEI Hospitality to Cornerstone RE Advisers for a reported transaction price of approximately $78 million. The 244-room Four Points by Sheraton - was sold by The Lam Group to Gehr Development for a reported transaction price of approximately $112 million. The 669-room Yotel was sold by a joint venture between Related Companies and Goldman Sachs to a joint venture between IFA Hotels & Resorts and Kuwait Real Estate Company for a reported transaction price of approximately $315 million. The 899-room New York Palace Hotel was sold by Brunei Investment Agency (BIA) to Northwood Investors LLC for a reported transaction price of approximately $377 million. The 188-room Carlyle was sold by a joint venture between Rosewood Property Company and Maritz Wolff & Company to New World Development for a reported transaction price of approximately $151 million. The 209-room Benjamin, 129-room Affinia Gardens, 210-room Affinia 50, 241-room Affinia Dumont, 323-room Affinia Shelburne, and the 526-room Affinia Manhattan were all sold by Denihan Hospitality Group to Pebblebrook Hotel Trust for reported transaction prices of $105 million, $118 million, $106 million, $122 million, $163 million, and $295 million, respectively. The following table summarizes these recent transactions. PwC Page 13

16 Transaction date Hotel name Rooms Transaction price Price per room May 2011 Royalton 169 $ 84,575,600 $ 500,447 May 2011 Morgans Hotel 113 $ 52,677,445 $ 466,172 May 2011 Radisson Lexington 712 $ 335,700,000 $ 471,489 June 2011 Algonquin Hotel 174 $ 78,400,000 $ 450,575 June 2011 Four Points by Sheraton $ 112,000,000 $ 459,016 June 2011 Yotel 669 $315,000,000 $470,852 July 2011 New York Palace Hotel 899 $377,000,000 $419,355 July 2011 The Carlyle 188 $151,142,454 $803,949 August 2011 The Benjamin 209 $105,792,152 $506,183 August 2011 Affinia Gardens 129 $117,501,714 $910,866 August 2011 Affinia $106,298,334 $506,183 August 2011 Affinia Dumont 241 $121,989,993 $506,183 August 2011 Affinia Shelburne 323 $163,496,962 $506,183 August 2011 Affinia Manhattan 526 $294,920,270 $560,685 Source: Real Capital Analytics PwC Page 14

17 Recent and planned hotel openings/closings PwC Page 15

18 Five hotels opened in Manhattan during June and August Hotels opening in June included the 316-room Dream Downtown and the 669-room Yotel New York Times Square. Hotels opening in August included the 64-room Flatiron Hotel, the 55-room Nolitan, and the 116-room Hyatt 48Lex Property Location Neighborhood Owner/Developer Anticipated Opening/ Closing Rooms Hotel Americano 518 W 27th St Lower Manhattan Grupo Habita Sep TRYP New York City Times Square South 345 W 35th St Lower Manhattan Allen Street Hotel Eros Management & Realty LLC Sep Orchard St Lower Manhattan D.A.B. Group LLC Oct Wyndham Garden Hotel New York 93 Bowery St Lower Manhattan Charles Hotel 893 Broadway Lower Manhattan 93 Bowery Holdings, LLC Oct Warman Enterprises, LLC Oct Howard Johnson 5 Allen St Lower Manhattan N/A Dec Property Location Neighborhood Owner/Developer Anticipated Opening/ Closing Rooms Holiday Inn New York City Midtown 30 W 31st St Lower Manhattan Hampton Inn Manhattan Downtown Financial District 32 Pearl St Lower Manhattan The NoMad Hotel 25 Great Jones Hotel & Spa 1170 Broadway 25 Great Jones St Lower Manhattan Lower Manhattan West 31 LLC Jan Hersha Hospitality Trust Jan Broadway Associates LLC Mar W 46 Street LLC c/o Second Dev. Svcs Mar Hyatt Regency Union Square 134 4th Ave Lower Manhattan Hersha Hospitality Mar Grand Street Hotel 43 Grand St Lower Manhattan Hyatt Place Midtown South Gem Hotel Union Square Holiday Inn Express New York City Manhattan Days Inn New York Audobon Hotel W 36th St W 13th St 60 W 36th St 548 W 48th St 507 W 181st St Lower Manhattan Uptown 45 Grand Street Family LLC Mar Brisam East 52nd LLC Apr Gemini Real Estate Advisors May Magna Hospitality Group May McSam Hotel Group Jun West 181 Associates LLC Jun PwC Page 16

19 Property Location Neighborhood Owner/Developer Anticipated Opening/ Closing Rooms Pod Too 145 E 39th St Lower Manhattan BD Hotel LLC Aug Axel The Out NYC Holiday Inn Express New York 510 W 42nd St W 43rd St Parkview Developers LLC Oct SCW West LLC Oct Fairfield Inn & Suites New York City Manhattan Midtown South 95 Henry St Lower Manhattan N/A Nov Holiday Inn New York City Manhattan 150 Delancey St Lower Manhattan McSam Hotel Group Dec and Hotels in permitting and planning Property Location Neighborhood Owner/Developer Anticipated Opening/ Closing Rooms Hotel Indigo New York Time Square Hotel Indigo Willow Hotel Holiday Inn Express New York Manhattan West Side Holiday Inn Manhattan Financial District W 38th St N/A Feb Orchard St Lower Manhattan N/A Mar W 57th St 540 W 48th St 99 Washington St Ark Investment Partners LP Mar N/A Apr Lower Manhattan Cambria Suites Chelsea 123 W 28th St Lower Manhattan Hyatt Place Midtown East 208 E 52nd St Midtown East Holiday Inn Manhattan New York Carnegie 57-Park Hyatt 585 8th Ave 136 W 42nd St 157 W 57th St McSam Hotel Group May We Care Trading Co Ltd May McSam Hotel Group Jun McSam Hotel Group Jun DiamondRock Hospitality Jun Extell Development Co Jul Four Points by Sheraton Financial District 6 Platt St Lower Manhattan The Lam Group Jul CitizenM Hotel Hyatt Place 125th St Harlem Bowery Lower Manhattan N/A Oct W 125th St Uptown ESmith Legacy Inc Nov aloft Hotel Manhattan Downtown Financial District Ann St Lower Manhattan 107 W Broadway Realty Corp Jan Unknown Location Lower Manhattan N/A Jun PwC Page 17

20 Property Location Neighborhood Owner/Developer Anticipated Opening/ Closing Rooms Four Seasons New World Trade Centre 99 Church St Lower Manhattan Cambria Suites Times Tower Verre 30 W 46th St 53 W 53rd St Fairfield Inn New York Lower Manhattan 20 Fletcher St Lower Manhattan Courtyard by Marriott Central Park SpringHill Suites New York West 37th Street Fairfield Inn & Suites New York City Midtown South Broadway W 37th St Silverstein Properties Inc Dec Extell Development Co Jan W205 Hines West Fifth Realty LLC Dec Seaport Heights LLC N/A 181 Granite Development Corporation N/A 378 Hidrock Realty N/A 168 W 33rd & 8th Ave Lower Manhattan N/A N/A 234 Courtyard by Marriott Manhattan Midtown South 960 6th Ave Lower Manhattan Residence Inn Central Park Graves Charney Hotel Born Hotel Broadway 120 W 41st St W 42nd St 960 Associates LLC N/A 168 Granite Broadway Development LLC N/A 270 George Comfort & Sons N/A 99 Highgate Holdings N/A St & 2nd Ave Midtown East N/A N/A N/A 11 E 31st St Lower Manhattan Sofi House N/A W 29th St Lower Manhattan Courtyard by Marriott New York Manhattan 34th St & 10th Ave Lower Manhattan W. 29th Realty LLC N/A 117 Rockhall Funding Corp N/A Front St Lower Manhattan GM Plaza LLC N/A Bond St Lower Battery Maritime Building Courtyard by Marriott New York Manhattan 11 South St & Whitehall St W 37th St Lower Manhattan Andrews Builders Corp N/A N/A Dermot BMB LLC c/o Dermot Co Inc N/A 135 Stonebridge Companies N/A E 30th St Lower Manhattan LHG, LLC N/A E 33rd St Lower Manhattan 510 W 44th St Empire 33rd Street LLC N/A 300 Mikesam Construction Corporation N/A E 47th St Midtown East Steve Shemel N/A 126 Unknown Location Uptown/Midtown East Dewberry Capital Corporation N/A N/A PwC Page 18

21 Property Location Neighborhood Owner/Developer Anticipated Opening/ Closing Rooms 196 Grand St Lower Manhattan 196 Grand LLC N/A E 44th St Midtown East CCW Realty Inc N/A N/A NYLO Manhattan 612 W 47th St 311 W 37th St Water St & Wall St 451 Madison Ave 618 Partner LLC N/A 150 Lower Manhattan Midtown East Stonebridge Companies N/A 206 NYLO Partners LLC N/A 130 The New York Palace Hotel N/A N/A 703 Washington St Lower Manhattan Madison Equities N/A W 25th St Lower Manhattan 577 9th Ave 40 Vestry St Lower Manhattan 107 W 28th St Lower Manhattan 105 W 28th St Lower Manhattan 68 Charlton St Lower Manhattan 1212 Broadway Lower Manhattan 33 E 29th St Lower Manhattan 50 Bowery Lower Manhattan 62 W 39th St 100 Varick St Lower Manhattan West 25th N/A N/A 400 Associates LLC N/A N/A 443 Greenwich LLC C/O Kar Properties N/A N/A 107 West 28th Street N/A West 28th Street N/A 24 Extell Development Co N/A N/A 1212 Broadway NYC LLC c/o Fantas N/A N/A Espais New York Corporation N/A N/A Centre Court Holdings, LLC N/A West 38th Street Development N/A N/A 100 Varick Realty LLC N/A 142 Greenhouse W 26th St Lower Manhattan Jack Ancona N/A 27 Convention Center Advaya Hotel Riverside Blvd 63 W 38th St Unknown Location Uptown/Midtown East N/A N/A 1, rd Ave Uptown 63 West 38 St. Development, LLC N/A N/A Uptown/Midtown East Advaya Hospitality N/A 155 EIK Harlem Associates N/A N/A PwC Page 19

22 Property Location Neighborhood Owner/Developer Anticipated Opening/ Closing Rooms CitizenM Hotel 87 Chambers St 235 W 54th St 218 W 50th St Lower Manhattan 338 Bowery Lower Manhattan th St 178 Walworth St IBC Chambers LLC N/A N/A The Moinian Group N/A N/A OSIB-BCRE 50th Street Holdings N/A 230 McSam Hotel Group N/A N/A New York City N/A N/A N/A New York City N/A N/A N/A 197 Mott St Lower Manhattan N/A N/A N/A 233 W 125th St Uptown Danforth Development Partners LLC N/A 156 Armani Hotel Manhattan Unknown Location Lower Manhattan Giorgio Armani & Emaar Hotel & Resort Group N/A N/A 5 Madison Ave Lower Manhattan Tommy Hilfiger/JSR Capital N/A N/A 322 W 14th St Lower Manhattan The ICON Group N/A N/A 24 W 53rd St Starwood Capital Group N/A E 37th St Lower Manhattan 6 E. 37th St. LLC N/A N/A th Ave Lower Manhattan 733 8th Ave Midtown East 431 W 33rd St Lower Manhattan Courtyard by Marriott New York Lower Manhattan Greenwich Rector St & Greenwich Ave Lower Manhattan 71 4th Ave Lower Manhattan 229 W 43rd St Georgetown Company N/A N/A 303 West 46th St, LLC N/A 375 McSam Hotel Group N/A N/A Hersha Hospitality Trust N/A Park Ave South LLC N/A N/A AFI USA N/A 379 W 33rd St Lower Manhattan OTO Development N/A James Farley Post Office Hyatt W 31st & W 33rd Lower Manhattan The Related Cos N/A Bowery Lower Manhattan Louzon Group N/A W 45th St N/A N/A 487 PwC Page 20

23 Property Location Neighborhood Owner/Developer Anticipated Opening/ Closing Rooms 523 Greenwich St Lower Manhattan Source: PwC, based on Smith Travel Research data and news reports Fortuna Realty Hotel SoHo LLC N/A 124 PwC Page 21

24 Second quarter 2011 Manhattan lodging index PwC Page 22

25 All Manhattan Occupancy ADR RevPAR June YTD Apr May Jun 2Q Apr May Jun 2Q Apr May Jun 2Q Occ. ADR RevPAR 2010 Market Average 87.1% 90.6% 88.3% 88.7% $ $ $ $ $ $ $ $ % $ $ Market Average 86.3% 88.2% 87.0% 87.2% $ $ $ $ $ $ $ $ % $ $ % Change from 2010 % Change from 2010 % Change from 2010 % Change from 2010 Market Average -0.8% -2.7% -1.4% -1.7% 9.9% 9.3% 8.4% 9.2% 9.0% 6.3% 6.9% 7.3% -2.3% 7.3% 4.8% By Segment Occupancy ADR RevPAR June YTD Apr May Jun 2Q Apr May Jun 2Q Apr May Jun 2Q Occ. ADR RevPAR Luxury Luxury % 87.5% 85.1% 85.8% $ $ $ $ $ $ $ $ % $ $ % 86.6% 86.1% 86.6% $ $ $ $ $ $ $ $ % $ $ Upscale % 92.5% 90.6% 91.0% $ $ $ $ $ $ $ $ % $ $ Upscale % 90.6% 89.5% 89.5% $ $ $ $ $ $ $ $ % $ $ Midprice % 91.7% 89.1% 89.1% $ $ $ $ $ $ $ $ % $ $ Midprice % 87.1% 85.4% 85.6% $ $ $ $ $ $ $ $ % $ $ % Change from 2010 % Change from 2010 % Change from 2010 % Change from 2010 Luxury 2.6% -0.9% 1.3% 0.9% 8.2% 7.0% 9.2% 8.0% 11.0% 5.9% 10.5% 9.0% -0.6% 6.8% 6.1% Upscale -1.5% -2.1% -1.2% -1.6% 11.7% 11.8% 9.4% 10.9% 10.0% 9.5% 8.1% 9.1% -2.7% 9.1% 6.2% Midprice -2.3% -5.0% -4.1% -3.9% 11.0% 11.8% 8.2% 10.3% 8.4% 6.2% 3.7% 6.0% -3.6% 8.0% 4.1% PwC Page 23

26 By Neighborhood Occupancy ADR RevPAR June YTD Apr May Jun 2Q Apr May Jun 2Q Apr May Jun 2Q Occ. ADR RevPAR Upper Manhattan % 85.8% 81.9% 82.8% $ $ $ $ $ $ $ $ % $ $ Upper Manhattan % 85.7% 85.1% 85.1% $ $ $ $ $ $ $ $ % $ $ Midtown West Midtown West Midtown East Midtown East Midtown South Midtown South % 92.6% 89.7% 90.6% $ $ $ $ $ $ $ $ % $ $ % 88.5% 88.6% 87.8% $ $ $ $ $ $ $ $ % $ $ % 90.4% 88.8% 89.0% $ $ $ $ $ $ $ $ % $ $ % 87.6% 86.3% 86.8% $ $ $ $ $ $ $ $ % $ $ % 92.3% 87.8% 89.5% $ $ $ $ $ $ $ $ % $ $ % 88.6% 87.9% 87.8% $ $ $ $ $ $ $ $ % $ $ Lower Manhattan % 90.6% 89.1% 89.6% $ $ $ $ $ $ $ $ % $ $ Lower Manhattan % 88.2% 85.9% 87.3% $ $ $ $ $ $ $ $ % $ $ % Change from 2010 % Change from 2010 % Change from 2010 % Change from 2010 Upper Manhattan 4.8% -0.1% 3.9% 2.8% 13.3% 9.6% 10.0% 10.8% 18.8% 9.5% 14.2% 13.9% 2.7% 10.4% 13.4% Midtown West -3.5% -4.4% -1.2% -3.0% 9.0% 8.9% 8.3% 8.7% 5.2% 4.1% 7.0% 5.4% -3.0% 6.3% 3.1% Midtown East -1.6% -3.1% -2.8% -2.5% 9.1% 7.1% 7.5% 7.8% 7.4% 3.8% 4.5% 5.1% -3.9% 6.9% 2.7% Midtown South -1.8% -3.9% 0.1% -1.9% 8.7% 9.9% 4.9% 7.8% 6.8% 5.6% 5.0% 5.7% -1.4% 5.0% 3.5% Lower Manhattan -1.3% -2.7% -3.6% -2.5% 4.6% 5.9% 3.7% 4.7% 3.2% 3.0% 0.0% 2.0% -3.9% 5.1% 1.0% Neighborhood Index Upper Manhattan 59th Street and North Midtown West 5th Avenue and West from 34th Street to 59th Street Midtown East 5th Avenue and East from 34th Street to 59th Street Midtown South 14th Street to 34th Street Lower Manhattan 14th Street and South PwC Page 24

27 By Service Occupancy ADR RevPAR June YTD Apr May Jun 2Q Apr May Jun 2Q Apr May Jun 2Q Occ. ADR RevPAR Full Service Full Service % 90.4% 88.3% 88.6% $ $ $ $ $ $ $ $ % $ $ % 87.8% 86.9% 86.9% $ $ $ $ $ $ $ $ % $ $ Limited Service % 91.5% 88.1% 88.9% $ $ $ $ $ $ $ $ % $ $ Limited Service % 89.4% 87.6% 88.1% $ $ $ $ $ $ $ $ % $ $ % Change from 2010 % Change from 2010 % Change from 2010 % Change from 2010 Full Service -1.1% -2.8% -1.6% -1.9% 9.6% 9.2% 8.6% 9.1% 8.4% 6.1% 6.8% 7.0% -2.6% 7.3% 4.5% Limited Service 0.4% -2.3% -0.6% -0.9% 11.3% 9.8% 7.5% 9.5% 11.8% 7.3% 6.8% 8.5% -1.1% 7.4% 6.2% By Affiliation Occupancy ADR RevPAR June YTD Apr May Jun 2Q Apr May Jun 2Q Apr May Jun 2Q Occ. ADR RevPAR Chain Affiliated % 90.7% 89.3% 89.2% $ $ $ $ $ $ $ $ % $ $ Chain Affiliated % 89.5% 87.9% 88.5% $ $ $ $ $ $ $ $ % $ $ Independent % 90.4% 86.8% 87.8% $ $ $ $ $ $ $ $ % $ $ Independent % 86.3% 85.7% 85.3% $ $ $ $ $ $ $ $ % $ $ % Change from 2010 % Change from 2010 % Change from 2010 % Change from 2010 Chain Affiliated 0.4% -1.4% -1.5% -0.8% 10.0% 9.7% 9.6% 9.7% 10.5% 8.2% 8.0% 8.8% -2.4% 8.0% 5.5% Independent -2.5% -4.5% -1.2% -2.8% 9.7% 8.6% 6.7% 8.3% 7.0% 3.7% 5.4% 5.3% -2.1% 6.1% 3.9% Source: PwC, based on Smith Travel Research data PwC Page 25

28 Contact us Hospitality & Leisure Sectors Convention center Cruise Gaming Lodging Marinas Sports facilities & teams For this publication Abhishek Jain Manager Warren Marr Managing Director Travel & tourism Vacation ownership For more information, please contact Maridel Gonzalez-Gutierrez at (305) , PwC Page 26

29 Contributing Writers: Abhishek Jain (Editor) Molly Caccamo The Manhattan Lodging Index is a quarterly publication of PwC's Hospitality & Leisure Practice. For information regarding this publication or for permission to print this report in whole or in part, please contact Abhishek Jain at You may also send to contact.hospitality@ us.pwc.com. This report is available from our website ( Some of the information contained herein is based on a voluntary survey and is not a statistical sample. Depending on the number of respondents, the information may not be representative of the total respective sub-classifications. Indications of percentage increase or decrease are representative of the performance of the participating sample for this year compared to last year. Although not a statistical sample, the information may be characteristic of general trends in the category. PwC Page 27

30 Further reading Hospitality Directions US: Q2 August 2011 Recent results show the lodging sector continues to demonstrate recovery momentum, yet a resetting of the economic outlook lowers expectations for lodging performance in the year ahead. Balancing these factors, our outlook for revenue per available room (RevPAR) growth is largely intact for 2011, at 7.5 percent, but shows gains slowing to 6.2 percent in Risk factors weigh on hotel asset values in the near term, but real estate characteristics favor a longer view. PwC Real Estate Investor Survey Second Quarter 2011 The most recent issue of the PwC Real Estate Investor Survey includes several key features. The national highlights article, Optimism Prevails Despite Economic Unease, comments on investor s outlook. The PwC Real Estate Barometer provides insights on the anticipated cycle paths for the four main property sectors, as well as geographic regions and metro areas. The semiannual National Development Land Market draws views from this fragile sub-sector. (Subscription required) PwC Page 28

31 The information contained in this document is provided as is, for general guidance on matters of interest only. PricewaterhouseCoopers is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any decision or taking any action, you should consult a competent professional adviser PricewaterhouseCoopers LLP. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers LLP, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.