HVS Market Pulse: Perspectives on the New York City Lodging Market 2019
Supply growth has been the dominant headline for the New York City lodging market over the past decade. The number of hotel rooms in the city increased from 66,000 in 2007 to 99,000 in 2018, a 50% increase in inventory. Another 15,000 rooms are under construction or proposed; if all of these rooms are built, the city's inventory will have increased by 75% in a 16-year period. Increases in demand kept pace with supply growth through 2018. However, in the first quarter of 2019, supply outpaced demand for the first time in the current cycle. While there are a number of factors that influenced these results, it is clear that the supply side of the equation is putting increasing pressure on the lodging market. This is evident in recent average rate trends, which illustrate sluggish ADR growth since 2010, including three years of actual declines.