The hospitality industry is thriving in Boston. New hotels are blossoming all over town. From the Encore Casino and Hotel to the Hyatt Centric on Devonshire Street to the new Four Seasons at One Dalton, it’s projected that Boston and Cambridge will have over 1,600 new hotel rooms in construction, with another 4,000 hotel rooms having been approved.
Why is Boston such a red-hot hotel market? There are many factors, chief among them is economic diversity. The Boston region is home to important financial institutions, bio-medical research laboratories, the best hospitals in the world, and over 30 colleges and universities. Each of these economic sectors generates demand for hotel room nights to accommodate business travelers, students, those seeking the best in medicine and families.
Boston Has a Massive Following
Boston is a true “hub” for air travel, as evidenced in 2017 and 2018 by an increase of 5.5 percent for each year, including a 9.3 percent increase in international travel with a total of 38.4 million passengers entering and leaving Boston’s Logan International Airport. Boston is a convenient city for European travelers, its East Coast location is easier to navigate than New York and flight connections are available to all other parts of the country and world.
The metropolitan Boston area continues to enjoy a very robust real estate market. Demand for living, working and shopping in the city has escalated demand for land and pushed development expectations ever higher. These new developments, along with good design practices are responsible for creating the energetic and lively, pedestrian-oriented city that Boston has become. Hospitality is a key component of the mix of uses that adds vitality to these streetscapes.
Our economy is strong, our transportation routes extensive and, notably, Boston remains a tourism and convention destination. Approximately 21 million visitors were attracted to the Greater Boston area, including 1.7 million international visitors in 2018. Some 7.2 million hotel room nights were sold in Boston and Cambridge that year, with a total hotel revenue of $1.8 billion. People come to visit our historic city, the beautiful shoreline or to venture to the northern reaches of New England. The area’s museums alone attracted 9.5 million visitors and the city hosted over 345 conventions last year. Clearly, this is a city that has a following.
Hotel occupancy rates in 2017 and 2018 illustrate the appeal of the region with 82 percent of all hotel rooms, on average, being occupied throughout the year. Of course, there are other times when occupancies are much more robust, up to and incredible 92 percent.
It is these combined factors that drive new hotel development in Boston and why hospitality itself is such an integral part of the city.
Gary Johnson
A Towering New Lodging Landmark
Of all the new hotels mentioned, one stands out: the new Four Seasons at One Dalton, nearing completion and opening this spring. This hotel, like Boston itself, is unique. Boston is one of a handful of cities, including New York, London and Istanbul, where this five-star luxury brand boasts two hotels. Why is this so? For all the reasons noted above and because Boston is so accessible for the international traveler. Moreover, Boston has been rediscovered as a great cosmopolitan city complete with diversity of culture, great museums, shopping, restaurants, theatre, music and a richness in American history.
When opened, the Four Seasons at One Dalton will be the culmination of five years of planning, design and construction. It has already become an icon on the city’s skyline and soon it will reveal itself as Boston’s newest luxury hospitality venue. Most importantly, it signals that hospitality in the city has never been so relevant and important. Boston is a world class economic leader, a desirable travel destination and a leader in hospitality.
Gary Johnson is president of CambridgeSeven architects. He and Henry N. Cobb of Pei Cobb Freed are collaborating architects for the Four Seasons Hotel and Private Residences at One Dalton.
