About 11,000 hotel rooms in Manhattan that were available before the start of the coronavirus pandemic may not return to the market, according to an analysis by hotel industry advisory groups on Monday, but the development of new hotels should make the much lower net loss. .
According to a study by LW Hospitality Advisors and JLL Hotels and Hospitality Group, approximately 11,100 hotel rooms could be lost due to closure, resizing or conversion to other uses out of the approximately 104,000 rooms that were available in Manhattan before the pandemic.
However, around 9,600 new rooms are expected to open as a result of ongoing hotel development projects, bringing the net change to a decline of around 1,500 rooms, or 1.4%, from pre-COVID-19 levels. pandemic.
Fewer rooms could be lost due to legislation passed by the New York City Council that requires inactive hotels to pay severance benefits to former employees unless they have recalled at least 25% of their employees by October 11 and open to the public by November 11. 1.
Urban hotel markets have been slow to recover due to the slump in business travel.
New York’s lodging industry is expected to bring in $531 million from business travelers this year – a huge drop from $4 billion in 2019, before the pandemic, according to research published by Kalibri Labs and the American Hotel & Lodging Association, Bloomberg noted.
At the height of the pandemic, about 40,000 hotel rooms in the city, or 30% of inventory, were closed, according to the study. Of these, around 6,000 rooms were back in business in March. Whether the industry will rebound to pre-pandemic levels is an open question, as the pandemic has reshaped the way businesses conduct business, with virtual meetings replacing in-person gatherings. The pandemic could permanently reduce business travel by 19% to 36%, according to a study by three respected airline industry figures and the the wall street journal.
NYC worst hit by $59 billion business travel slump (Bloomberg)
Pandemic puts New York hotels on the brink: ‘A complete washout’ (New York Times)