FAST FIVE: NYC Hotel Occupancy Rate Crashes Toward 10% As Permanent Closures Loom
Others, like the Pierre, are operating in limited capacity.
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.
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.
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”.