Manhattan was the most active hotel investment market nationally in 2013, with total hotel transaction volume of $1.8 billion in 2013, Manhattan liquidity outranked that of Oahu Island, San Francisco, Los Angeles, Boston and? Washington, DC.
Transaction volume in Manhattan is expected to range from $2.7 to $2.8 billion in 2014, significantly above volumes observed in 2013.
The Manhattan hotel market is the strongest RevPAR performer among the top-25 U.S. hotel markets with a 25% RevPAR premium over the next highest market. In 2013, Manhattan?s upper-tier hotels posted a RevPAR increase of 4.3% over 2012 levels.
Over 6,400 hotel rooms will be added to the Manhattan market in 2014, increasing the market?s room inventory by 8%. With close to 15,000 new rooms anticipated to enter the market between 2014 and 2016, Manhattan has more rooms under construction than any other U.S city.
Despite the robust supply pipeline, based on historical trends, these rooms are expected to be absorbed relatively quickly. The market?s upper-tier hotels are expected to achieve RevPAR growth of 3% to 3.5% in 2014, driven largely by rate growth.
$17 billion in hotel transactions since 2000
To summarize Manhattan hotel transaction volume in the early 2000s, from 2000 to 2003 transaction levels averaged approximately $300 million annually.
Liquidity jumped to $1.8 billion in 2004 as RevPAR turned positive for the first time since 2000 and leverage started to expand.
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Source: Globally, Manhattan among the top-five hotel investment markets, 4Hoteliers http://www.4hoteliers.com/news/story/12521 published May 02, 2014. Viewed May 02, 2014.