August marked the seventh consecutive month of recovery for the Greater Boston hotel market, according to a new report.
Revenue per available room (RevPAR) experenceied double-digit growth in all market segments, and average daily rates (ADR) is outpacing growth in demand for hotels located inside Route 128 for the first time this year, according to Boston-based PKF Consulting.
Hotels located along Route 128 and Interstate 495 experienced strong demand growth, but more modest or flat growth in average daily rate.
Overall, greater Boston hotels experienced a 7.5 percent jump in ADR and 6.6 percent increase in occupancy resulting in a 14.4 percent boost in RevPAR.
Boston hosted two large citywide conventions in August which benefited properties located in Back Bay, Downtown and Cambridge with strong growth in ADR along with bolstering the overall group market segment by seven percentage points as compared to 2009. The American Chemical Society brought 6,500 delegates to the BCEC in late August, which generated most of the additional group roomnights for the month. In 2009, Boston held two smaller citywides generating little compression.
"All indications point to the Greater Boston hotels continuing to experience growth in both demand and average daily rate through the end of 2010," the report found.
For the year through August, RevPAR gains have been experienced across every tier of property and in every location and size. Properties with less than 150 rooms continue to experience the strongest gains, however this market sector still experiences the lowest occupancy at 57.6 percent. This compares to the 67.7 percent average for the entire market for the year-to-date.





