Source: PwC

Revenue per available room (“RevPAR”) fell to the lowest first quarter average since 2011, as average daily room rate (“ADR”) declined across all Manhattan submarkets. During the quarter, increases in lodging supply, which continued to outpace growth in demand, resulted in the largest year-overyear decline in occupancy since 2009. Despite more positive expectations coming into the New Year, the quarter ended on a weak finish with March RevPAR down 11.1 percent.

With a 7.7 percent decrease from prior-year levels, first quarter RevPAR was driven by a combined decline in ADR and occupancies. With what should have been a favorable calendar shift of the Easter holiday to April this year, March 2019 results were particularly disappointing. Falling by 3.6 percent from prioryear levels, Q1 occupancy finished the quarter at 78.2 percent, compared to 81.2 percent in the first quarter of 2018.

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