Prices at New York City hotels have plunged as the hospitality industry continues to try and grapple with the effects of the global pandemic.
Some hotels, like the Midtown Hilton, have remained closed since March. Others, like the Pierre, are operating in limited capacity. Those that are open for business have slashed prices by more than 60%, according to a new writeup by AlJazeera.
Despite October usually being a fruitful month for tourism in NYC, coronavirus has forced the cancellation of staple events like the NYC Marathon and Fashion Week. And while the industry has definitely recovered since March, it still has a long way to go. 200 of New York’s roughly 700 hotels remain closed, the article notes.
Lukas Hartwich, an analyst at real estate research firm Green Street, said: “Next year is going to be far worse than any year we’ve ever had except this one. It’s going to be 2022 before we get back to where we were during the worst part of the last recession.”
Occupancy rates in NYC stand under 40% right now, with the average daily room price at $135. Those figures, last October, stood at 92% and $336. Industry locals say the 2020 figure may even be inflated, as many hotels stopped reporting data for the time being.
Vijay Dandapani, chief executive officer of the Hotel Association of New York City, said: “The true hotel occupancy is less than 10%. Hotels have theoretically been able to be open, but in many cases it’s pointless.”
In addition to risk-adverse travelers, corporate travel has also diminished, acting as a major headwind for the industry.
Executives in the industry predict that up to 20% of the city’s hotels could wind up permanently closed. Those that have stayed open, like the Pierre, are offering limited services. For example, at the Pierre, room service stops after breakfast and the concierge clocks out at 5PM now.
Some hotels have even contacted the Department of Homeless Services to try and “convert properties into temporary shelters”.
There have been shades of optimism elsewhere, however. Heading into the summer, Americans started traveling to beach locations against again, with places like Virginia Beach and Panama City seeing sustained hotel recoveries.
Dan Peek, president of the hotel group at advisory firm Hodges Ward Elliott, concluded: “It would be a bad bet to say that New York isn’t going to come back. But it does face some unique challenges that will likely result in a slower recovery.”
Originally published on Zero Hedge.
COVID-19 may take down an independent news outlet
Nobody said running a media site would be easy. We could use some help keeping this site afloat.
Colleagues have called me the worst fundraiser ever. My skills are squarely rooted on the journalistic side of running a news outlet. Paying the bills has never been my forte, but we’ve survived. We have ads on the site that help, but since the site’s inception this has been a labor of love that otherwise doesn’t bring in the level of revenue necessary to justify it.
When I left a nice, corporate career in 2017, I did so knowing I wouldn’t make nearly as much money. But what we do at NOQ Report to deliver the truth and fight the progressive mainstream media narrative that has plagued this nation is too important for me to sacrifice it for the sake of wealth. We know we’ll never make a ton of money this way, and we’re okay with that.
Things have become harder with the coronavirus lockdowns. Both ad money and donations that have kept us afloat for a while have dropped dramatically. We thought we could weather the storm, but the so-called “surge” or “2nd-wave” that mainstream media and Democrats are pushing has put our prospects in jeopardy. In short, we are now in desperate need of financial assistance.
The best way NOQ Report readers can help is to donate. Our Giving Fuel page makes it easy to donate one-time or monthly. Alternatively, you can donate through PayPal as well. We need approximately $11,500 to stay afloat for the rest of 2020, but more would be wonderful and any amount that brings us closer to our goal is greatly appreciated.
The second way to help is to become a partner. We’ve strongly considered seeking angel investors in the past but because we were paying the bills, it didn’t seem necessary. Now, we’re struggling to pay the bills. This shouldn’t be the case as our traffic the last year has been going up dramatically. June, 2018, we had 11,678 visitors. A year later in June, 2019, we were up to 116,194. In June, 2020, we had 614,192. We’re heading in the right direction and we believe we’re ready talk to patriotic investors who want to not only “get in on the action” but more importantly who want to help America hear the truth. Interested investors should contact me directly with the contact button above.
Election year or not, coronavirus lockdowns or not, anarchic riots or not, the need for truthful journalism endures. But in these times, we need as many conservative media voices as possible. Please help keep NOQ Report going.