Manhattan Q2 2018 RevPAR Growth by Month — Photo by Source: PwC, based on STR data

Average daily room rate ("ADR") was up for the sixth consecutive month, driving continued strength for Manhattan hotels in revenue per available room ("RevPAR") growth during Q2. During the quarter, growth in lodging demand continued to exceed increases in room supply, with occupancy posting gains quarterover-quarter and year-over-year. As pricing power appeared to finally return to the Manhattan lodging market, RevPAR increased 4.3 percent over prior year levels, driven largely by growth in ADR levels at hotels across all classes and neighborhoods. As the Manhattan lodging market continues to strengthen, ADR growth has improved, increasing 3.3 percent for the first half of 2018. RevPAR also showed improvement, increasing 5.5 percent during the first six months of the year. With occupancy reported at 90.7 percent in Q2 across Manhattan, Q2 2018 marked the highest year-to-date occupancy level over the 24-year period tracked.

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