There are many ways to try and put the impact of the ongoing pandemic on the lodging sector in context, but perhaps none better than looking at the performance of New York City over the last 24 months or so.
If you recall, the Big Apple was on fire before COVID came to town. We all remember the pre-pandemic days of average rates well over $400, but those lofty numbers and that extraordinary demand are ancient history now. And given its sizable inventory, the impact that New York City has on the U.S. hotel market in general is not hard to understand.
As in many urban markets, New York City hoteliers have had to get creative to try and drive business. The good news is there may be at least some help on the way. In an effort to boost hotel demand in Manhattan, NYC & Company, the official destination marketing organization and convention and visitors bureau for the five boroughs of New York City, has launched a creative “Hotel Week” promotion.
Beginning earlier this week on January 4, the promotion is offering guests at select New York City hotels a 22 percent discount in deference to the start of 2022. While it’s been dubbed Hotel Week, the promotion actually lasts more than a month concluding on February 13.
There are more than 100 hotels taking part in the campaign, including The Pierre, The Beekman, and the newly opened Civilian Hotel, a theater district inspired hotel which debuted in November.
NYC & Company also reportedly plans to launch some similar promotions involving Broadway shows, restaurants and museums to help drive down costs and entice potential visitors.
Just how badly does the city need some help in getting heads in beds? Consider some recently released statistics from STR for the month of November.
Occupancy for New York City came in at 71.2 percent for November, up dramatically from the 35 percent seen in 2020 but still not nearly where it should be during a peak season. Meanwhile, average daily rate (ADR) came in at $225.82 and RevPAR at $182.08 for the month.
However, when looking at year-to-date numbers through November, the struggles become even more pronounced. Year-to-date occupancy through November for New York City was 58.3 percent, while ADR came in at $198.30 and RevPAR was $115.66.
With January and February typically softer months for the city, not to mention the surge of the Omicron variant that has been experienced throughout the country, the importance of finding ways to drive additional business can not be understated.
But the aforementioned promotion aside, hoteliers need to remain proactive and generate their own campaigns and initiatives to help boost business going forward. That should be a New Year’s resolution worth keeping for everyone in 2022.