Boston and Cape Cod hotels achieved strong growth in August as tourism and business travel improved.
Thomas Grillo
Real Estate Editor- Boston Business Journal
Boston and Cape Cod and the island hotels saw increased occupancy and revenues in August, according to a PKF Consulting USA report.
The 92 Boston area hotels in the PKF Trends in the Hotel Industry report achieved an average 85.8 percent occupancy at a $181.52 average daily rate (ADR) with a resulting $155.72 revenue per available room (RevPAR). These performance levels represented an occupancy gain of 1.5 percent, a 4.7 percent increase in ADR, and an overall 6.3 percent rise in RevPAR for August compared to the same month a year ago.
In August, RevPAR increases were primarily driven by growth in the daily rate of the area’s six submarkets. The Back Bay, Route 128, and Cambridge achieved ADR gain of more than five percent. The Route 495 South submarket experienced RevPAR increases primarily from occupancy growth at 4.1 percent. The Route 128 and Route 495 North submarkets reported occupancy losses.
Year-to-date, Cambridge achieved the most significant occupancy growth of 5.1 percent, while the downtown Boston submarket led in ADR gain with 10.6 percent increase.
The Cape Cod, Martha’s Vineyard, and Nantucket Island hotels also reported strong operating results in August. The 17 hotel operators in the PKF Trends sample averaged an 87.8 percent occupancy at a $409.07 average daily rate (ADR) with a resulting $359.09 revenue per available room (RevPAR). These performance levels represented an occupancy gain of 7.5 percent, a 5.4 percent increase in ADR, and an overall 13.2 percent rise in RevPAR for August compared to one year ago.
Year-to-date, the Cape Cod submarket achieved the most significant occupancy growth of 7.6 percent, while the Islands submarket reported the most ADR increases of 4.9 percent.
Follow Your Favorites with My News
My News is a way to create a customized news feed based on companies and industries that matter to you.
Open all references in tabs: [1 – 3]