Cambridge hotels, like the Hyatt Regency, had the most significant occupancy growth at 3.2 percent from January through October.
Thomas Grillo
Real Estate Editor- Boston Business Journal
Greater Boston hotels had mixed results in October as occupancy fell during Hurricane Sandy while the average daily rate increased by nearly 8 percent, according to PKF Consulting.
The 91 hotel operators in the PKF Trends in the Hotel Industry sample for Greater Boston area achieved an average 83.5 percent occupancy — the lowest in four years — at a $219.02 average daily rate (ADR) with a resulting $182.89 revenue per available room (RevPAR). These performance levels represented an occupancy loss of 2.4 percent, a 7.6 percent increase in ADR, and an overall 5 percent rise in RevPAR for October 2012 as compared to the same month last year.
RevPAR increases were primarily driven by growth in the average daily rate in the six submarkets. The Back Bay, Downtown and Cambridge led in ADR growth with 9.8 percent, 7.5 percent, and 6.3 percent, respectively. Conversely, the six submarkets experienced occupancy losses, except for the Back Bay, which experienced an occupancy gain of 2.4 percent. Moreover, the Route 495 North submarket achieved an occupancy loss of nearly 11 percent.
October’s performance for Greater Boston hotels was the lowest in occupancy except for 2008; highest in ADR except for 2007; and highest in RevPAR since 2007. The best October for Boston area hotels in the last seven years was 2007 with a RevPAR of $219.60.
Year-to-date,The 91 hotel operators in the PKF Trends in the Hotel Industry sample for Greater Boston area achieved an average 83.5 percent occupancy — the lowest in four years — at a $219.02 average daily rate (ADR) with a resulting $182.89 revenue per available room (RevPAR). These performance levels represented an occupancy loss of 2.4 percent, a 7.6 percent increase in ADR, and an overall 5 percent rise in RevPAR for October 2012 as compared to the same month last year.