Marriott Poised for Relief in NYC With Construction Surge Easing

The supply surge that’s kept New York hotel room rates from rising for two and a half years may be starting to ease. That’s good news for operators including Marriott International Inc. as the industry’s fight with Airbnb in the priciest U.S. lodging market turns ugly.

Even with occupancy well above the national average, room rates in the city are down, declining 1.8 percent in the first half, amid a construction boom, according to STR. The supply of rooms rose an average of 4.8 percent annually from 2014 to 2016, the lodging-data provider said. Marriott’s second-quarter revenue after costs from owned and leased hotels fell to $102 million from $115 million, partly due to lower results in New York, the company said in its earnings statement Monday.