NYC Hotel Occupancy Rate Crashes Toward 10% As Permanent Closures Loom

New York is dead.  San Fran is dead.  Minneapolis is dead.  Seattle is dead.  Portland, Oregon is dead.  Chicago is dead.  Nothing to discuss.  None of these cities have working law enforcement or courts.  The DA’s are protecting rioters and looters.  Taxes are so high the middle class is fleeing.  Our major cities, run by Democrats are now run by gangs, terrorists and New-Bolsheviks.  Free people must stay locked down—not because of the virus—but to protect their own safety.

“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.

The worse news is that Comrade DiBlasio has announced NOTHING opens till at least June, 2021.  By then even the rates will have left town.  No hotels, no restaurants mean no tourists.  Tourist attractions are closed—so small business is closed.  Churches are closed and the racist, failed schools are closed.  It does not need a Mayor or City Council, it needs a liquidator.  Los Angeles and San Fran are the same way—as is Oakland.  California is collapsing and the Supreme Leader is signing Executive Orders to keep us in an economic Depression for at least a generation.

NYC Hotel Occupancy Rate Crashes Toward 10% As Permanent Closures Loom

by Tyler Durden, Zero Hedge,  10/25/20    

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. 

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. What is the end game in destroying their cities? Land and property grab? Take over by government by eminent domain? Slums? No businesses, no revenue, more poverty, more welfare??

  2. Hotels feel fortunate if they have a 70% occupancy. They make most of their profit lines on holidays where that gets close to 90%.

    Drop the rate to under 40% and you have operations going out of business. There has to be a base housekeeping staff to stay open, you have to have front desk people to accept guests, and that is a bottom line that cannot change. If the property is leased or mortgaged that is another expense.

    When the property value sinks, it means government receives less tax money. Yet the Democrats continue to increase tax rates. Are you Democrats getting this or are you that dense?

  3. Private sector run by the public sector is Socialism and we are seeing the fruits of that management style every day now. The pandemic is a complex problem and government handling of almost anything has always been ponderous, slow, inefficient and expensive. We can not afford BIG GOVERNMENT!
    Our only hope is to vote the worst of these entrenched politacal hacks out of office. To do that we must embrace the fact that voting for anybody that runs on maximizing your “free stuff” is your enemy.
    Our ignored National Debt is over $80,000 per man woman and child and growing minute by minute.
    We are a meritocracy first and foremost. Everything else exists because of it. Demand performance not blame shifting rhetoric.

  4. William Hicks says

    There should be a lot of room for the “homeless” in NYC.

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