Revenues and vacancies in Greater Boston hotels were mixed in May, according to as new survey.
Thomas Grillo
Real Estate Editor- Boston Business Journal
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Boston area hotels reported mixed operating results for May, according to the latest PKF Consulting survey.
The 94 hotel operators in the PKF Trends in the Hotel Industry sample for Greater Boston achieved an average 81 percent occupancy at a $201.97 average daily rate (ADR) with a resulting $163.59 revenue per available room (RevPAR). These performance levels represented an occupancy decrease of 1.2 percent, a modest 0.3 percent increase in ADR, and an overall 0.9 percent decrease in RevPAR for May 2013 as compared to May 2012.
In May, the RevPAR increase was primarily driven by growth in occupancy in the Back Bay. Conversely, hotels in the Route 495 North area saw RevPAR gains primarily driven by ADR growth. The remaining four submarkets, Boston, Cambridge, Route 128, and Route 495 South, experienced RevPAR losses caused by either occupancy or ADR decreases, or both.
The largest decrease in RevPAR was experienced in the Downtown as it achieved occupancy and ADR losses at 2.8 percent and 1.4 percent, respectively. The highest occupancy for May was also achieved in the Downtown submarket at 86.2 percent.
Compared to previous Mays over the last eight years, May 2013 performance for Greater Boston hotels was higher in occupancy than 2008 and 2009, highest ADR since 2007, and higher in RevPAR than 2008 through 2011. The best May for Greater Boston hotels over the last eight years was 2007 with a RevPAR of $177.78.
For year-to-date May 2013, the Back Bay has achieved the most significant occupancy growth of 10.2 percent, while Route 128 has led in ADR gain with 6 percent increase. Under the Average Daily Rate category, the hotels in the “Under $100” ADR category experienced the most occupancy gain at 4.5 percent and the most ADR growth at 8.4 percent.
Under the size category, the hotels in the over 400 rooms category achieved the most occupancy growth at 4.4 percent, followed by the hotels in the under 150 rooms category at 3.7 percent. The latter also achieved the most ADR gain at 3.6 percent. Overall, most hotels in Greater Boston finished May with relatively stable RevPAR results compared to May 2012.
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