NYC luxury chains finally feel recession
By Martha Lomanno STR
In this time of economic uncertainty, luxury chains are taking a large turn for the worse. In both the United States and the United Kingdom, occupancy and revenue per available room within this segment have seen increasingly large declines. While New York City hotels have been able to keep RevPAR positive within the luxury chain segment for a while, the city is starting to see the effects of the recession, with October seeing considerable declines. Similar to resorts, luxury chains are seeing faster and sharper declines in occupancy and RevPAR. One of the main reasons for this is the weakening international economy and increasing strength of the dollar. This will inhibit many foreign travellers from coming into the United States, as well as travelling within the U.K. One of the reasons why New York had been able to keep slightly positive may be related to this. New York has always attracted many tourists from within the United States. Unlike resort areas where many tourists are international, New York has the benefit of many domestic travelers, both business and leisure. New York hotels are not as reliant on international travel as most other resort areas and luxury properties.