X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-The lodging industry’s sagging numbers have continued to deteriorate since the events of September 11, prompting Ernst & Young’s Hospitality Services Group to revise its already-tepid 2001 forecast.

January predictions included growth in the national Revenue Per Available Room–a key hotel-performance indicator–of 3.7% or $56.33. The revised, post-attack projection is a decline of 5.2%, for an overall 2001 RevPAR of $51. E&Y says occupancy is also sliding a slippery slope, with the 63.7% January prediction now modified to reflect an anemic 60.5% occupancy rate, down 3.2% from last year.

The Average Daily Rate forecast has also dipped since January, from $88 down to $85 for the year, on the assumption that hotel operators will be forced to slash rates to attract customers. Business travel is expected to recover first as convention business, severely curtailed in September, gets back on schedule.

“The industry finds itself in a great challenge,” says E&Y national director of hospitality services Chase Burritt. “Most of our clients are projecting significant revenue declines and cost overruns. The combination of the economic slowdown and tragic events of September 11 have led to the worst occupancy we’ve seen in 10 years.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.