Hotel operators throughout the Greater Boston area experienced an unexpectedly strong resurgence in occupancy and stabilizing average daily rate levels for the first half of 2010, according to a new report.

In May, while all areas tracked experienced positive gains in revenue per available room (RevPAR), hotels located along Rte. 128 led the pack with a 24.5 percent increase over May 2009 generated by increased occupancy, according to Boston-based PKF Consulting.

In June, the RevPAR improvement patterns shifted. Hotels located along Rte. 495 North showed the greatest gain at 16.6 percent, while rate discounting by Cambridge hotels led to a 3.7 percent RevPAR decrease in that market.

Properties with rooms priced at more than $200 per night experienced the strongest RevPAR growth of 15.2 percent. These, mostly Boston proper, hotels benefited from two citywide conventions at the beginning and end of June, resulting in both increased occupancy and average daily rate. Rate discounting for properties under 100 rooms resulted in a 4.9 percent RevPAR drop. By size, hotels under 150 rooms again experienced the strongest RevPAR gain.

Year-to-date June 2010, the epicenter of hotel revenue improvement as measured by RevPAR growth, expanded from downtown Boston’s 12.9 percent improvement to Rte. 495 South’s 1.2 percent improvement.

High-end hotels showed the greatest RevPAR gain at 14.1 percent, followed by the moderately priced $100 to $150 rooms, which gained 9.4 percent in RevPAR.

Properties with less than 150 rooms achieved the strongest RevPAR improvement at 15.6 percent.

Looking towards 2011, Boston RevPAR is expected to grow 7 percent, which is lower than that anticipated for 2010. The forecast is based on a 2.1 percent increase in occupancy and a 4.7 percent growth in average daily rate next year.

 

 

Report: ‘Strong Resurgence’ In Hub Hotels

by Banker & Tradesman time to read: 1 min
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