11,000 Manhattan hotel rooms could be lost as pandemic wreaks havoc on hospitality industry, study finds

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Top line

About 11,000 hotel rooms in Manhattan that were available before the coronavirus pandemic began may not return to the market, according to analysis by hospitality industry advisory groups on Monday, but the development of new hotels is expected. drastically reduce the net loss. .

Highlights

About 11,100 hotel rooms could be lost due to the closure, resizing or conversion to alternative uses of the approximately 104,000 rooms available in Manhattan before the pandemic, according to a study by LW Hospitality Advisors and JLL Hotels and Hospitality Group.

However, about 9,600 new rooms are expected to open as a result of ongoing hotel development projects, bringing the net change down to about 1,500 rooms, or 1.4%, from pre-pandemic levels.

Fewer rooms could be lost due to legislation passed by the New York City Council that requires inactive hotels to pay severance pay to former employees unless they recall at least 25% of their employees by October 11 and are open to the public d ‘by November 1st.

Urban hotel markets have been slow to recover due to the collapse in business travel.

Surprising fact

New York’s accommodation industry is expected to earn $ 531 million from business travelers this year – a huge drop from $ 4 billion in 2019, before the pandemic, study finds published through Kalibri Laboratories and the American Hotel & Lodging Association, Bloomberg noted.

Key context

At the height of the pandemic, about 40,000 hotel rooms in the city, or 30% of stocks, were closed, according to the study. Of these, around 6,000 rooms were back in March. Whether the industry will rebound to pre-pandemic levels is an open question as the pandemic has reshaped the way companies do business, with virtual meetings replacing in-person gatherings. The pandemic could permanently reduce business travel by 19% to 36%, according to a to study by three respected figures from the airline industry and the the Wall Street newspaper.

Further reading

NYC takes biggest hit of $ 59 billion business travel collapse (Bloomberg)

A pandemic puts New York hotels on the brink: “a complete wash” (New York Times)


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