The New York City and Manhattan portfolio ran at occupancy levels in excess of 90% and recorded strong Hotel EBITDA margins of 42.9% and 45.6%, respectively. The Company’s same-store Hotel EBITDA margins were primarily impacted by ADR based RevPAR loss in the Company’s New York City portfolio.
The Company’s top performing market during the quarter was Philadelphia Urban which recorded RevPAR growth of 15.6%. The Company’s Boston, California-Arizona and Washington D.C. portfolio also recorded strong quarterly results with RevPAR growth of 7.2%, 6.0% and 4.9%, respectively.
New York City and Manhattan
The New York City hotel portfolio, which includes the five boroughs, consisted of 15 hotels as of September 30, 2012. For the third quarter of 2012, the Company’s same-store New York City hotel portfolio (15 hotels) recorded a 0.9% decrease in RevPAR to $186.00, as ADR decreased 0.7% to $206.12 and occupancy decreased 0.2% to 90.24%. Hotel EBITDA margins decreased 320 basis points to 42.9%. Despite the weakness in the third quarter, our New York City portfolio has posted 6.4% RevPAR growth year to date through the third quarter.The Manhattan hotel portfolio consisted of 12 hotels as of September 30, 2012. For the third quarter of 2012, the Company’s same-store Manhattan hotel portfolio (12 hotels) recorded a 1.1% increase in RevPAR to $198.32 as occupancy increased 1.2% to 91.59% while ADR decreased 0.2% to $216.54. Hotel EBITDA margins decreased 220 basis points to 45.6%. Year to date through the third quarter, the Manhattan portfolio has delivered 9.2% RevPAR growth with 40 basis points of EBITDA margin expansion. The weakness that impacted the Company’s New York City performance during the quarter was primarily due to the disappointing September results for the entire market. The weaker than anticipated performance was primarily the result of the timing of two Jewish holidays, significant cancellations by foreign delegations resulting in less than anticipated demand from the UN General Assembly, and an overall lack of compression from low group demand during the quarter.