Declines in occupancy and revenue per available room ("RevPAR") continued to accelerate across Manhattan during the fourth quarter, as the COVID-19 pandemic curbed both holiday tourism and commercial traveler demand to the city. With tens of thousands of rooms temporarily closed, business and international travel all but suspended, and leisure demand drivers severely restricted, fourth quarter revenue per available room ("RevPAR") experienced a year-over-year decline of 85.2%.

"2020 is a year Manhattan hotel owners will likely choose to forget. With RevPAR down 71.2% for the year, owners are looking for a rapid distribution of a vaccine during 1H 2021 to ignite a gradual return of city-wide conventions, followed by the domestic business traveler and lastly, international inbound travel." - Warren Marr, US Hospitality & Leisure Managing Director

Unprecedented number of permanent closures of Manhattan hotels grows

Manhattan's lodging sector continues to experience record permanent closures due to the COVID-19 pandemic. As of December 2020, 18 hotel properties consisting of 5,976 rooms in Manhattan were reported to stay closed permanently. This represents a 121% increase in the number of permanently closed rooms compared to the second quarter of 2020.

During the second half of 2020, 11 hotels permanently closed in Manhattan, including the 1,015-room Roosevelt Hotel, 876-room Hudson Hotel, 480-room Novotel Times Square, 460-room Hilton Times Square, 196-room Salisbury Hotel, 132-room AKA Wall Street, 109-room Marmara Manhattan, 102-room Best Western Bowery Hanbee, 100-room AKA Tribeca, 95-room AKA United Nations, and 60-room Comfort Inn Manhattan Bridge.

Source: PwCSource: PwC
Source: PwC
Source: PwCSource: PwC
Source: PwC

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