As the downtown economy reopens, Boston is set to absorb nearly 2,200 additional hotel rooms this year. The additional 5.5 percent in room supply is the largest in 20 years, and it hits a market that suffered the nation’s second-worst financial performance after New York City in 2020.
It appears that the demise of the Cape Cod hotel industry due to the pandemic has been greatly exaggerated. If anything, many industry figures say the Cape lodging sector is emerging stronger than ever.
The distribution of COVID-19 vaccines is fueling optimism that Americans will increasingly return to the ways they used to shop, travel and work before the pandemic.
Hotels throughout New England are normally preparing for their peak season this time of year. Unfortunately, 2020 has been anything but normal.
During this time of uncertainty, what we can focus on is how to make hotels safer and healthier in a post-COVID world.
Lodging demand in Boston and Cambridge, similar to the rest of the U.S., is expected to experience continued growth in line with the economy, however, increases to lodging supply will negatively impact occupancy and put downward pressure on pricing power.
A new report suggests a growth in lower-end hotels in Boston could drive down a key regional profitability metric next year.
New supply is expected to outpace demand in 2019. Nine new hotels, with a total of approximately 1,500 room will open this year, representing a 4.5 percent increase to supply.
