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The Plaza Hotel, St. Regis Hotel, and Waldorf Astoria (iStock)
New York City hotels won’t be able to party like it’s 2019 until 2025.
Occupancy rates in the city won’t recover to pre-pandemic levels until halfway through the decade, according to a new CBRE study reported by the Commercial Observer.
The commercial brokerage firm expects revenue per available room to hit 2019 levels by 2024, with occupancy rates reaching 74 percent in 2022 and 86 percent in 2025.
CBRE’s report predicts an average occupancy of 43 percent for hotels through June, an increase from last year’s 35 percent.
The vaccination rollout and passage of $1.9 trillion of Covid relief will provide hotel owners with some reprieve in the meantime, according to CBRE senior hotel economist Bram Gallagher.