The Hospitality Services group at E&Y Kenneth Leventhal Real Estate Group worked overtime to produce its latest Manhattan Lodging Report, a compilation of research covering 1998's industry performance trends and providing a glimpse at 1999 and beyond. Last year saw record performance in the Manhattan lodging market, with continued sharp increases in room-night demand, average daily rates and new additions to room supply.
Of particular note is the approaching millennium, which will have a positive impact on the city's lodging market through new demand but not that much new supply. New hotels planned or under construction will be dynamic and attention-getting, to say the least.
Key industry trends include a focus on increasing shareholder value; continued global consolidation; focus on core competencies (more outsourcing); focus on lifetime customer value; and continued development of e-commerce, requiring firms to use advanced technology to be competitive.