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NYC Hotel Survey Page 1 of Michael Bloomberg, Click on the links below Mayor, New York City Hotel Survey for information on: New York City HVS International, in cooperation with New York University’s Preston Robert Tisch Center for New York City Hotel New York remains the Hospitality, Tourism, and Travel Administration, is pleased to present the fifth annual Manhattan Hotel Survey best destination in the Market Overview. Our research and findings indicate that in 2001, the Manhattan lodging market world for business and HVS International experienced a decline in operating performance prior to September, due primarily to a softening national recreational travel – economy; the terrorist attacks of September 11th further accelerated this decline. However, we forecast that was confirmed in The Preston Robert the carefully that by 2005, occupancy in Manhattan will reach 1999 levels and average rate will achieve 2000 levels. Tisch Center for researched and widely Hospitality, Tourism, read Condé Nast and Travel Traveler magazine, Administration which named New York City its “2002 Hot New York University City.” New York won Annual International that coveted Hospitality Investment designation based on HVS International is a global hospitality consulting organization with offices in New York, San Francisco, Conference the outstanding new Miami, Denver, Vancouver, Toronto, São Paulo, Buenos Aires, London, New Delhi, and Singapore. The hotels and restaurants organization has a professional staff of more than 150 industry specialists offering a wide range of Acknowledgements that have opened here services, including market feasibility studies, valuations, strategic analyses, development planning, and in the past 12 months. Five great new litigation support. Through its various divisions, HVS supplies unique hotel consulting expertise in the Manhattan Operating restaurants and three areas of executive search, environmental sustainability, timeshare consulting, food and beverage History new hotels in New operations, design consulting, gaming, operations analysis, asset management, operational management, York were listed by strategy development, convention facilities consulting, marketing communications, and investment New Supply Condé Nast Traveler; consulting. For more than 20 years, HVS International has provided consulting and valuation services to no other city hit the list over 10,000 hotels in all 50 states and more than 60 foreign countries. Members of the firm have authored Recent Changes to Hotel with that many entries. virtually all literature on the subject of hotel market studies and valuations, including seven textbooks and Supply in Manhattan over 300 articles. Condé Nast Traveler Proposed Hotels in got the story right: Manhattan There has never been a better time to visit the Manhattan Operating greatest city on earth – Statistics by Market and the safest big city Segment in the United States – and take in our incomparable cultural Manhattan Operating institutions, exciting Statistics by attractions, wonderful Neighborhood new restaurants, and unparalleled hotels. Manhattan Operating The successes of the The Preston Robert Tisch Center for Hospitality, Tourism, and Travel Administration at New York History and Forecast World Economic University is a dynamic and growing educational and research center located in the heart of Manhattan. Forum meeting in New The Tisch Center offers an extensive complement of hospitality and tourism academic programs of study, York in January of including two bachelor’s degree programs and four master’s degree programs (two on-site and two online). 2002 and the TriBeCa In concert with its location in the financial and hotel capital of the world, coursework is focused on the Click on the links below Film Festival in lower areas of asset management, financial analysis, revenue management, customer relationship management, Manhattan to read quotes from the and e-commerce relative to the international hospitality and tourism industry. As entrepreneurial educators, following individuals: demonstrate that the administrators and faculty are experienced in the profession and bring the reality of the industry into the Big Apple remains the premier city for world- classroom. The Tisch Center’s motto encapsulates its uniqueness — The City is our laboratory, the Michael Bloomberg, class conferences and industry is our faculty, and our students are the future of the profession. Mayor, events; that judgment New York City has been further confirmed by the recent New York University Annual International Hospitality Investment Conference Jonathan M. Tisch, decisions to hold the Chairman & CEO, Grammy Awards and For 19 years, HVS International has played an integral role in New York University ’s Annual International Loews Hotels; MTV Music Video Hospitality Industry Investment Conference. Once again, our team of professionals looks forward to Chairman, Awards shows here in Travel Business 2003. welcoming you to this prestigious event, which is scheduled for Sunday-Tuesday, June 2-4, 2002, at New York City’s Marriott Marquis Hotel. Roundtable During 2002, we Stephen Rushmore, anticipate that more President and Founder, than 32 million people Acknowledgements HVS International will visit New York City, and that New Randy Smith of Smith Travel Research has provided the Survey’s historical operating data. Smith Travel Joseph E. Spinnato, York will attract more Research continues to be the leading source of hospitality industry operating statistics. We would also like President, than 5.7-million to thank Donna Quadri of HotelRevMAX, a New York -based global data services firm, which has Hotel Association of international visitors. provided comprehensive hotel statistics for this survey. Additionally, in cooperation with the New York They’ll see a New York NYC, Inc. determined to recover University Preston Robert Tisch Center for Hospitality, Tourism, and Travel Administration’s Research from last year’s tragic Program, the data-gathering process was largely a contribution of two graduate students, Nan Hua and Randy Smith, events, rebuild, and Erica Leigh Weingarten, through the coordination of Dr. Mark M. Warner, Director of Graduate Programs. President, remain the Capital of HVS International is pleased to have been a part of this enriching educational process. Smith Travel Research the World. Cristyne L. Nicholas, President & CEO, NYC & Company Click here to visit the Dr. Lalia Rach, web site for New York University’s Preston Associate Dean, Robert Tisch Center for Preston Robert Tisch Center for Hospitality, Hospitality, Tourism, and Travel Tourism, and Travel Administration Administration, New York University Click here to visit the HVS To download a printable International web site PDF version of this survey, click here. Stephen Rushmore Roland de Milleret William D. Lee President Senior Associate Consulting & Valuation Analyst HVS International HVS International HVS International HVS International acknowledges our copy http://www.hvsinternational.com/emails/NYC%20Survey/2002/cover.htm 5/9/2002 NYC Hotel Survey Page 2 of and web editor: Sarah Beth Nickl Frank P. Dougherty Lalia Rach, Ed.D Mark M. Warner, Ed.D Senior Vice President Associate Dean Director of Graduate Programs HVS International The Preston Robert Tisch Center for The Preston Robert Tisch Center for Hospitality, Tourism, and Travel Hospitality, Tourism, and Travel Administration Administration back to top next page http://www.hvsinternational.com/emails/NYC%20Survey/2002/cover.htm 5/9/2002 NYC Hotel Survey Page 1 of Jonathan M. Tisch, Click on the links below Chairman and CEO, Manhattan for information on: Loews Hotels; Chairman, Travel Business Roundtable New York City Hotel Operating History Survey This year’s hotel survey – which shows the recent HVS International decline in the New York City In 2001, the Manhattan lodging market experienced decreased performance levels for the first time in hotel market – is clearly nine years, primarily due to the impact of the national economic downturn, which was compounded by The Preston Robert reflective of the impact that the a significant increase in supply, a softening in demand, and the September 11th terrorist attacks. Tisch Center for slowing economy and the However, we expect the Manhattan lodging market to recover by the beginning of 2003. Hospitality, Tourism, September 11th terrorist and Travel attacks have had on the local Administration hotel market. However, as a According to data provided by Smith Travel Research (STR) , a 9.7% decrease in demand and an 11.4% result of the combined efforts drop in average rate between 2000 and 2001 resulted in a 22.3% decline in marketwide revenue per New York University put forth by both the available room (RevPAR) during the same period. However, during the longer term historical period of Annual International government and the hotel 1988 to 2001, Manhattan lodging demand rose at an average annual compounded rate of 0.8%, while Hospitality Investment industry to help get people Conference traveling again, there is a average rate and RevPAR increased by 4.0% and 3.3%, respectively. Although the national economy stumbled during 2001, most economic indicators for the New York metropolitan area (including sense that the recovery may begin sooner than first employment levels, retail sales, population trends, office vacancy rates, and trade statistics) suggest Acknowledgements anticipated; signs of an initial further growth in the middle- and long -term
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