Fourth-quarter hotel occupancy and average daily rate in the New York City borough of Manhattan increased significantly year over year, according to a PwC report, but the firm suggested increasing supply and a stabilizing market could limit 2025 increases.
Manhattan fourth-quarter occupancy increased 3.5 percent year over year to 89.3 percent, according to PwC's Manhattan Lodging Index, while ADR increased 7.9 percent to $420.74. Revenue per available room increased 11.7 percent year over year to $375.65.
Manhattan's Q4 occupancy marked "a return to pre-Covid stabilized levels," PwC principal Abhishek Jain said in a statement. "RevPAR growth was strong in Q4, recording the highest year-over-year growth of any quarter in 2024. However, with the anticipated stabilization of the market, along with several new openings projected, growth is expected to moderate in 2025."
Among new Manhattan hotels slated to open in 2025 are the 51-story, 379-room Hotel Meta, part of Marriott's Tribute Portfolio, and a 529-room Kimpton property, each in Midtown, according to PwC.