Increases in occupancy, ADR and RevPAR continued to accelerate across Manhattan during the second half of 2022, according to PwC’s Manhattan Lodging Overview.
Q4 RevPAR experienced a year-over-year increase of 54.2%, with the strongest gains in October—up 85.8%. Q3 RevPAR increased 75.1% from the same period in 2021.
RevPAR increased 54.2% year-over-year during the fourth quarter of 2022. Occupancy and ADR continued to advance in a post-pandemic recovery as group and corporate travel patterns began to normalize and the market experienced its first holiday season with limited pandemic-related restrictions since 2019. Year-over-year increases in occupancy were highest in October, up 32.1%. With overall occupancy for the quarter at 82.7% and ADR at $376.37, Manhattan RevPAR jumped from $201.90 in Q4 2021 to $311.23 in Q4 2022.
Of the four market classes tracked, upper-upscale properties exhibited the most notable year-over-year increase in RevPAR, up 65% for the quarter, driven by a 30.1% increase in occupancy from 63% in 2021 to 82% in 2022, and a 26.8% increase in ADR from $281.11 to $356.51. For upper-midscale properties, occupancy grew by 15.5% and ADR by 41.6%, resulting in a year-over-year RevPAR increase of 63.5%. Upscale properties experienced similar RevPAR growth, posting a 61.6% increase, driven by a 14.9% increase in occupancy and a 40.6% increase in ADR. Luxury properties posted the smallest increase in RevPAR of 37.9%, attributable to an 18.4% increase in occupancy and the lowest increase in ADR among all market classes, up 16.5%.
Of the five Manhattan neighborhoods, Midtown East had the largest increase in RevPAR, up 65.8%, driven by a 29.8% increase in ADR and a 27.7% increase in occupancy year-over-year. Midtown West RevPAR grew by 64.3%, largely driven by a 32.1% increase in ADR. Lower Manhattan and Midtown South posted RevPAR increases of 35.1% and 54.5%, respectively. Upper Manhattan had the smallest increase in RevPAR—still up 30.7%—with ADR growth moderating.
During the fourth quarter, growth in occupancy at full-service hotels outpaced limited-service hotels, with year-over-year increases of 21.1% and 15.1%, respectively. RevPAR increased 54.5% for full-service properties and limited-service hotels saw an increase of 53.3% over the same period.
For chain-affiliated and independent hotels, fourth-quarter RevPAR grew by 56.7% and 48.4%, respectively. The improvement in chain-affiliated hotels was driven by stronger increases in both occupancy and ADR, up 20.9% and 29.6%, respectively.