Banker & Tradesman file photo

Boston hotels are suffering from the second-worst financial performance in the nation as the urban hospitality market continues to feel the lingering effects of COVID-19 travel downturns.

The Boston market trails only San Francisco in the decline of revenues per available room (RevPAR) between May 2020 and May 2021, according to the American Hotel & Lodging Association, with a 67 percent decline to $61.

Boston hotels historically received nearly two-thirds of their business from the corporate and group travel markets, according to hospitality industry researchers Pinnacle Advisory Group. But leisure travel is expected to comprise 55 percent of the local market in 2021, Pinnacle projects.

Urban hotel markets have been the hardest-hit with average RevPAR declines of 52 percent over the same period, according to AHLA. All but four of the 25 largest markets are in what AHLA considers “recession” or “depression” cycles, due to the decline in business travel and group meetings. Group travel isn’t expected to fully cover until at least 2023 following the cancellation of major conventions and meetings.

Only three markets – Norfolk/Virginia Beach, Miami and Tampa – have maintained positive RevPAR over the past year, the report said.

AHLA and hotel workers union Unite Here cited the findings in renewing their call for passage of the Save Hotel Jobs Act, which would provide payroll grants and tax credits to the battered industry.