| It turns out, the gloom the rest of the US feels in hospitality has hit NYC harder on a percentage decline in RevPAR than other markets like Hawaii and Vegas, thanks to our dependence on corporate room demand, oversupply, and a post-AIG business travel drop, says, JLL Hotels’s Jeff Davis, whom we snapped at his E. 53rd St. office. What happens in 4Q, he adds,will be the biggest indicator of whether there's further room for decline. |
| But fear not—there is a positive side. Once out of this, hospitality operators will be working on a more efficient basis, and we'll see much more profitability, Jeff says. We're at the end of new construction, which will curb additional oversupply, and the sector is seeing stress versus distress. There will be limited room to develop more properties, and consumer confidence is returning. The question is whether the recovery will be an extended V versus a sharp V, he adds. (note: We’ll call it a W, if that hotel chain sponsors us. . . . Kidding.) |
GLOOM TO EFFICIENCY TO ROOM SERVICE
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Jeff Davis
, JLL Hotels
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