Press Release
FOR IMMEDIATE RELEASE
Wednesday November 30, 2005
LONG ISLAND HOTEL OCCUPANCY RISING, BUT STILL BELOW 2001 LEVELS
Contact: Kristen Matejka
Director of Marketing and Communications
LICVB&SC
631 951-3900 xt.317
MARKET REPORT: LONG ISLAND HOTEL OCCUPANCY RISING, BUT STILL BELOW PRE-2001 LEVELS
HAUPPAUGE, NY- (November 30, 2005)- Long Island hotel occupancy and average daily rate (ADR) is rebounding from a several-year slow down, most notably in westernmost Nassau County where close proximity to New York City and a high level of business services at a fraction of the cost make it an attractive alternative to now-skyrocketing Manhattan hotel rates.
Suffolk County, which appeals to a largely leisure travel demographic, is seeing moderate increases in occupancies and ADR, although occupancy levels in this easternmost county still have not returned to 2001 levels. Over the past several years Long Island has seen an influx of new hotel rooms, especially in Suffolk County, and occupancies have not quite advanced back to pre-2001 peaks. See attached charts.
With beautiful ocean beaches and world-class golf, Long Island has a largely seasonal hotel industry with occupancies peaking during the June through September season, and business meetings, retreats, tours and conventions business filling out the year-round business. At 120 miles long by 20 miles wide, Long Island’s Nassau County and Suffolk County have a combined count of 16,949 hotel rooms in 358 properties ranging from large business hotels focused on meetings and conventions to small boutique inns and B&Bs.
Nassau County
Nassau County occupancy rates (83.30% in September 2005) are the highest they’ve been since May 2001, and ADR is at its highest recorded level, jumping nearly $20 in one year, from $123.34 in September 2004 to $143.47 in September 2005, according to Smith Travel Research. July and August 2005 saw occupancy levels at 76.90% and 77.40% respectively.
Nassau County still has a way to go in bouncing back to pre-2001 occupancy level heights, which hovered near 90% during the peak June-September 2000 season. Year 2000 total average occupancy levels for Nassau County were 82.80%.
Year-to-date 2005 occupancy levels in Nassau County were at 68.23%, despite 2005 summer highs. An unusually slow January 2005 in Nassau County has brought the year’s average down, with occupancy levels posting at only 46.90% in January 2005, down from a high of 73% in January 2001.
Sharp increases in NYC hotel rates may cause a trickle down effect to Long Island, although new builds near the airports in Brooklyn and Queens have added over 1300 rooms between Long Island and Manhattan.
Scenic Long Island stands on its own with many hotels located just outside New York City and near major airports serving the area including JFK International, La Guardia Airport, and Islip Mac Arthur Airport. In Nassau County, Long Island offers picturesque scenery, historic sites, high-end shopping, seaside villages, sandy beaches, golf, arts and entertainment, a top children’s museum, aviation museum, and meetings venues year-round.
A major project that may affect the future direction of Nassau County’s hotel industry is the proposed redevelopment of the Nassau County Coliseum. One current proposal includes an expansion of the existing Coliseum, a new athletic complex, a proposed conference center and exhibition hall, in addition to a 60-story hotel/residence “Lighthouse” tower. This and other proposals are being considered for the site.
Suffolk County
Long Island’s largely leisure tourism-oriented hotels in Suffolk County also saw slightly higher occupancy rates during peak tourism months of July and August 2005, at 80.60% and 82.50% respectively, up from July and August 2004, when occupancy was 78.40% and 81.60% respectively. Several new build hotels in the area may be keeping occupancy rate increases moderate and still well below August 2000 highs, when occupancy was 92.90%, according to Smith Travel Research.
On a positive note, Long Island’s Suffolk County hotels saw ADR peak to its highest recorded levels in August 2005, jumping $6.00 from 2004, from $140.32 to $146.57. July 2005 ADR, at $136.90, in Suffolk was also up from July 2004 in Suffolk, at $132.91, although July ADR still hadn’t caught up to July 2000 highs of $140.13, Smith Travel Research figures show.
Suffolk County includes the Hamptons, known for white sandy beaches, celebrity-sitings, quaint villages, high-end shopping, artistic history and fine restaurants. The region has also seen a healthy wine industry develop in the past 30 years with over two dozen vineyards and tasting rooms opento the public. Other attractions include sport-fishing, golf, cultural events, festivals, Atlantis Marine World aquarium in Riverhead, the area’s top-rated Splish Splash Water Park, and the Tanger Outlet Center, among others.
The expansion of Suffolk County’s MacArthur Airport by Southwest Airlines has also added to the accessibility to the region. In the past five years, Southwest Airlines has expanded its flight schedule to almost 30 flights daily, carrying nearly 200,000 passengers per month.
For more information, additional photos, or to speak with Long Island hotel operators, please contact Kristen Matejka, LICVB, at 631 951-3900 xt. 317.
Charts:
Nassau County Occupancy (%)
May June July August September
2005 68.40 81 76.90 77.40 83.30
2004 67.29 77.70 76.70 73.50 73.90
2003 72.70 79.90 78 79.80 75.80
2002 60.80 73.70 73 78.80 68.40
2001 83.80 86.30 80.60 83.40 78.60
2000 n/a 91.10 87.60 91.20 91.30
Source: Smith Travel Research
Nassau County ADR ($)
May June July August September
2005 139.72 143.28 121.71 142.87 143.47
2004 119.67 125.87 122.42 120.69 123.34
2003 115.18 118.95 114.94 118.44 117.59
2002 132.64 148.17 125.52 120.10 120.23
2001 126.73 132.87 124.61 122.76 122.46
2000 n/a 118.84 118.99 121.21 120.75
Source: Smith Travel Research
Suffolk County Occupancy (%)
May June July August September
2005 67.50 75.60 80.60 82.50 74
2004 65.50 79.10 78.40 81.60 71.70
2003 71.90 79.10 82.30 86.40 70.70
2002 72.30 80.60 81 82.80 72.70
2001 74.20 83.30 82.20 88.50 72.30
2000 77.40 84.20 86.20 92.90 85.90
Source: Smith Travel Research
Suffolk County ADR ($)
May June July August September
2005 120.44 123.14 136.90 146.57 127.73
2004 115.27 137.49 132.91 140.32 122.05
2003 111.79 118.39 129.23 135.44 115.77
2002 119.10 137.72 130.90 133.14 114.60
2001 123.24 125.35 134.11 138.14 119.00
2000 n/a 125.93 140.13 143.33 123.20
Source: Smith Travel Research
Long Island-New Hotel Builds
Coming 2006
La Quinta Bohemia-132 rooms
Hilton Garden Inn Plainview-174 rooms
Courtyard by Marriott Farmingdale-130 rooms
2005
Holiday Inn Express Riverhead-89 rooms
Best Western Bar Harbor-added 21 rooms
2004
Harborfront Inn Greenport-35 rooms
Residence Inn Holtsville-124 rooms
Homewood Suites-Plainview-147 rooms
Source: Robert Lipper: Island Publications
Total Hotel Rooms
Nassau/Suffolk-Total: 16,949 rooms/358 properties
Nassau: 5,323 rooms/54 properties
Suffolk: 11,626 rooms/304 properties
Source: Robert Lipper-Island Publications
For more information, or contact names and numbers at area hotels, please contact Kristen Matejka @ 631 951-3900 xt 317 or KMatejka@funonli.com.
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