Boston area hotels reported the occupancy rate fell while the average daily rate increased in September.
Thomas Grillo
Real Estate Editor- Boston Business Journal
Greater Boston area hotels reported mixed results in September as the occupancy rate fell and the average daily rate increased, according to the latest PKF Consulting USA Hotel Industry report.
The 90 hotel operators in the Boston area sample achieved an average 82.2 percent occupancy at a $199.98 average daily rate (ADR) with a resulting $164.31 revenue per available room (RevPAR). These performance levels represented an occupancy loss of 2.2 percent, a 3.4 percent increase in ADR, and an overall 1.1 percent rise in RevPAR for September compared to the same month last year.
RevPAR increases were primarily driven by growth in ADR in all six submarkets. Specifically, the Route 128, Back Bay, and Downtown submarkets all achieved ADR gains of more than three percent. In contrast, the six submarkets reported occupancy losses, with the Back Bay, Route 495 North, and Cambridge submarkets experiencing more than a three percent decrease in occupancy.
Compared to previous Septembers since 2005 — excluding 2009 when data was unavailable— September 2012 performance for the Greater Boston area hotels was the second lowest — the lowest being 2010 — in occupancy; higher in ADR than 2010 and 2011; and higher in RevPAR than 2010 and 2011. The best September for the Greater Boston area hotels in the last seven years was 2007 with a RevPAR of $196.56.
From January through September, Cambridge achieved the most significant occupancy growth of 4.1 percent, while the Downtown led in ADR gain with 9.5 percent increase, with the Back Bay trailing at 9 percent.
Under the Average Daily Rate category, the hotels in the over $200 ADR category achieved the most ADR growth at 8.9 percent, while the hotels priced between $100 and $150 ADR category experienced the most occupancy gain at 2.6 percent.
Hotels with fewer than 150 rooms achieved the most ADR growth at 10.3 percent. Properties with more than 400 rooms achieved the most occupancy gain at 2.6 percent.
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