“Meaningful” increases in operating metrics for Manhattan hotels will not be seen “until we see a return of the business traveler, and that likely comes after a widely distributable vaccine and therapeutics become available,” according to Warren Marr, managing director of PwC. In the second quarter of 2020, according to the latest PwC report, the pandemic continued to severely impair Manhattan hotels. With over 60,000 hotel rooms currently closed, widespread cancellation of group travel and heightened economic uncertainty, second-quarter revenue per available room (RevPAR) experienced a year-over-year decline of 81.6%. This represents the largest decline in RevPAR in modern history for the market. While the pace of closures has stabilized, some temporarily closed hotels are now reported to be closed permanently. It’s not surprising that, given their operating cost structure, higher-priced hotels are disproportionately impacted. Luxury and upper upscale-class hotels are the most affected, with 70% or more of hotel rooms in each of these segments closed. Upper upscale hotels are experiencing the highest levels of permanent closures. On the other hand, lower-priced hotels have been relatively less impacted, driven by a combination of factors, including a comparatively lower operating cost structure.