Travelers Boost New York City Hotel Occupancy Rates
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New York hotel bookings this year have exceeded the level before September 11, 2001, suggesting travelers are less concerned about the terrorism threats that loom over the city, industry analysts said.
NYC & Company has reported city hotels sold 15.8 million nights by the end of the third quarter of this year, which is 6.8% more than in the same period in 2000. The boost in occupancy rates has improved sales for sellers of hotel supplies.
“There is no question the industry has rebounded,” said a senior vice president of George Little Management LLC, Philip Robinson, whose company is hosting this week’s International Hotel/Motel Restaurant Show in the Jacob K. Javits Convention Center. “A lot of hotel companies cut back on technology and room amenities after the attacks on the World Trade Center, but they are now loosening up their purse strings and spending their dollars.”
Mr. Robinson noted that more than 45,000 hotel executives are registered for the show, which includes more than 1,500 suppliers. The congestion on the exhibition floor yesterday suggested no shortage of interest from buyers for the hotels.
The president of the New York State Hospitality & Tourism Association, Daniel Murphy, said the increased de mand for rooms in the city has affected all hotels, from the very modest to the luxurious. But the most dramatic impact of this demand is present at five-star hotels located north of 59th Street. Regardless, all hotels can attribute their recent gains to the return of business travelers and international travelers, he said.
Businesspeople are feeling more confident about the economy and are willing to spend more of their disposable income in the city, as demonstrated by increased sales at high-end stores like Nordstrom and Bloomingdales, he said.
International travelers are also returning to the city after heavy marketing by New York tourism agencies promoting the city’s safety and affordability, Mr. Murphy said.
They are also being encouraged to travel here because of the weakened dollar, which hit an all-time low last week when $1.30 was equal to one euro, he said.
“A lot of gateway cities like San Francisco and Boston are coming back with international travelers,” Mr. Murphy said. “But without a doubt, the two cities that have really started to flourish again are Washington., D.C., and New York City.”
The gains of gateway cities, he added, are also shared by surrounding communities in a ripple effect. International travelers attracted to New York City are traveling upstate to Cooperstown, Lake Placid, the Finger Lakes Region, and Niagara Falls, he said.
But while hotel rates represent an optimistic impression of the state of the industry, the average daily room rate suggests a gap still needs to be filled before the demons of September 11 can be exorcised. The average daily rate for a hotel room in New York City hovers around $225, which is still $45 less than the going rate four years ago, according to the president and chief executive officer of NYC & Company, Christyne Nicholas.
“We’re well on our way to recovery, but we’re not there yet,” Ms. Nicolas said. “The hotel rate is still not where the market value would place it.”