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PwC Manhattan Lodging Index Q2 2024
Manhattan Lodging Overview
Occupancy, average daily rate (ADR), and revenue per available room (RevPAR) continued to experience strong growth as the market moves toward stabilization. Luxury hotels notably outperformed their lower-priced counterparts across these key performance indicators, reflecting a broader resurgence in the luxury segment during 2024. For the overall Manhattan hotel market, Q3 RevPAR increased by 5.1%, while Q4 saw an increase of 11.7% compared to the same periods in 2023.
“As a bellwether market, Manhattan’s hotel market averaged an occupancy level of 89.3% in Q4 2024, marking a return to pre-COVID stabilized levels. 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.” Abhishek Jain, Principal, PwC
RevPAR increased 11.7% year-over-year during the fourth quarter of 2024, outpacing third quarter growth of 5.1%. Both occupancy and ADR also continued to advance at a quicker pace than Q3. Q4 year-over-year increases in occupancy were highest in October – up 5.5%, and lowest in December – up 1.4%. Q4 2024 average occupancy and ADR increased to 89.3% and $420.74, respectively, resulting in Manhattan RevPAR jumping from $336.30 in Q4 2023 to $375.65 in Q4 2024.
Of the four market classes tracked, luxury properties exhibited the most significant year-over-year increase in RevPAR – up 15.3% for the quarter, driven by a 4.9% increase in occupancy from 80.4% in Q4 2023 to 84.3% in Q4 2024 and a 9.9% increase in ADR from $639.89 to $703.55.
For upscale properties, quarterly occupancy grew by 2.3% and ADR by 6.5% year-over-year, resulting in a RevPAR increase of 9.0% from Q4 2023. Upper upscale properties experienced a 10.6% increase in RevPAR since Q4 2023, driven by a 3.8% increase in occupancy and a 6.5% increase in ADR. Upper-midscale properties posted a 10.8% increase in RevPAR year-over-year, attributable to an increase in occupancy of 4.4% and an increase in ADR of 6.2%. All four market classes saw RevPAR increase by at least 5% since Q4 2023, driven by increases in occupancy and ADR across all classes.
H2 2024 Manhattan RevPAR Change, by Month
H2 2024 Manhattan Occupancy & RevPAR Levels, by Month
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