Hotels continued to show improvement in February.
Thomas Grillo
Real Estate Editor – Boston Business Journal
Greater Boston hotels reported steadily improving operating results for February 2012, according to the latest survey from PKF Consulting.
The 91 hotel operators in the trend sample for the region achieved an average 57 percent occupancy at a $141.75 average daily rate (ADR) with a resulting $81.34 revenue per available room (RevPAR). These performance levels represented an occupancy gain of 4.9 percent, a 5.8 percent increase in ADR, and an overall 11 percent rise in RevPAR for February 2012 as compared to February of last year, the report said.
While February is typically a lower demand month for the overall Boston market due to the weather, the February year-over-year increases demonstrated continued strength in lodging demand growth which Boston has experienced for more than a year, researchers found.
The increases were primarily driven by growth in occupancy in the Back Bay, Downtown Boston, Cambridge, and Route 495 South submarkets. Cambridge led the occupancy gain at a notable 13 percent increase. Still, the Route 128 and Route 495 North submarkets experienced RevPAR growth predominantly from ADR increases. In particular, the Route 495 North submarket saw negative growth in occupancy that was not quite offset by the increase in ADR, resulting in a small decrease in RevPAR.
Compared to previous Februarys, the February 2012 performance for Greater Boston hotels was the highest in ADR since 2010 and the highest in occupancy and RevPAR since 2009. The best February for the greater Boston area hotels in the last six years was 2007 with a RevPAR of $113.97.
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