Occupancy In Manhattan Hotels Rises Slightly

Manhattan hotels, often viewed as a bellwether for the overall U.S. lodging industry, should see occupancy rates of 74 percent this year, slightly above the 73.3 percent occupancies recorded in 2001, according to statistics released late last week by PricewaterhouseCoopers.

Average daily rate, however, is projected to fall in 2002 to $187 from $197 in 2001. This would suggest that hotel companies have reduced rates approximately 5 percent in an effort to drive business, a figure travel buyers could use as a benchmark as they enter negotiations with hotel companies for 2003 rates in the coming weeks.