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Long Island Hotel Performance Expected to Hold Steady
For Long Island, CBRE Hotels Research is forecasting growth in RevPAR, occupancy and average room rates through the end of 2019. However, these gains may be short-lived as the outlook for 2020 and 2021 calls for slight declines in occupancy as new product comes on line.
“As national hotel performance continues to slow down amidst increasing supply, the annual increase in ADR for Long Island properties should remain steady at 1.5 to 2%, given the market’s limited exposure to supply growth,” said Mark VanStekelenburg of CBRE Hotels. “For the year, CBRE is projecting a RevPAR increase of 3.7%, well above the national average, with occupancy up by 2% over 2018 and rate up by 1.7% amidst a 0.4% reduction in supply.”
CBRE projects Long Island hotel occupancy to decline by 1.9% in both 2020 and 2021, with slight dips in RevPAR next year as supply increases and growth is flat in 2021.
Pictured: A Hyatt Regency in Hauppauge, NY.
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