Top Line

Roughly 11,000 hotel rooms in Manhattan that were available before the coronavirus pandemic began may not return to the market, according to an analysis by advisory groups in the hospitality industry on Monday, but the net loss from the development of new hotels is much smaller. likely to happen. .

important facts

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According to a study by LW Hospitality Advisors and JLL Hotels & Hospitality Group, about 11,100 of the approximately 104,000 rooms available in Manhattan before the pandemic could be closed, resized or lost to alternative use.

However, hotel development projects are expected to result in the opening of about 9,600 new rooms, bringing the net change to about 1,500 fewer rooms, or a decline of 1.4%, from pre-pandemic levels.

may lose less room due to Legislation Passed by the New York City Council requiring dormant hotels to pay severance pay to former employees as long as they have recalled at least 25% of their employees by October 11 and by November 1. be open to the public.

The pace of recovery in urban hotel markets has been slow due to the decline of business travel and travelers choosing larger, less crowded venues.

main background

According to the study, at the height of the pandemic, about 40,000 hotel rooms in the city, or 30% of inventory, were closed. Of those, about 6,000 rooms were back in business by March.

NYC Takes Biggest Hit From $59 Billion Business Travel Collapse (Businesshala)

Pandemic puts NYC hotels on the brink: ‘A complete washout’ (new York Times)