15
RevPAR is defined at room revenue per available room. RevPAR = room revenue divided
by room nights available.
According to Smith Travel Research as Published by Hotel Business December 2000 the
following are the U.S. Lodging Industry Key Statistics
1990
August 2000
2001
Room Supply *
3,205,300
4,003,600
Room Demand *
2,041,795
2,542,286
Room Revenue
$43.3 Billion
$77.0 Billion
Occupancy
63.7%
63.5%
ADR
$58.68
$84.01
RevPAR
$37.36
$53.34
Gross Operating Profit
24.9%
39.2%
Aggregate Industry Profits
5.4%
3.4%
* Average Daily Available/Sold
According to the New York Times, 7/12/2000 "Chicago, Boston and Washington, D.C. are at
risk and likely to experience declining revenue per available room." " Price Waterhouse
Coopers places 5 cities in a favorable category - New York, Los Angeles, San Francisco, San
Diego and Miami - slower growing supply, quickly rising prices and occupancy rates."
Housing
Housing enjoyed a phenomenal year despite raising interest rates. The prices of housing in
Manhattan have pushed effective demand into the outer boroughs. The New York Times
reported that in 1999 prices went up in every zip code in New York City.
In 1999 according to MLS, Sales of residential housing topped $4 Billion setting a record 4
th
straight year. Some areas increased in value greater than 12%. Some areas in Manhattan
increased almost 30%. The condominium and cooperative market in Manhattan will continue
to rise but more slowly. The demand will continue to spill over to the outer boroughs causing
higher appreciation there. As of November 2000, total residential sales in Nassau and Suffolk
were almost equal to all of 1999.
The median selling price of houses in Nassau County is $189,000 +/- and $153,000 +/- in
Suffolk County.
The rental market remained tight throughout the year 2000 with occupancy rates greater than
95%. Marketing times remained short while the difference between asking and selling prices
began to widen sporadically indicating some signs of cooling.
