Boston area hotels did well in January despite several snow storms.
Thomas Grillo
Real Estate Editor- Boston Business Journal
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Despite several headline-grabbing snow storms, Great Boston hotels experienced a strong January.
PKF Consulting and Hospitality Research, which surveyed 96 local hotel operators, found the Boston area had an average occupancy rate of 56.6 percent and an average daily room (ADR) rate of $151.89. Taken together, those metrics combined for average revenue per available room (RevPAR) of $85.90.
On a year-over-year basis, the performance represented a 4.1 percent increase in occupancy; a 5.4 percent increase in ADR; and a 9.8 percent increase in RevPAR. Downtown Boston hotels experienced a 10.6 percent growth in RevPAR, while the suburbs saw a 6.2 percent RevPAR increase.
For January 2014, all submarkets experienced increases in occupancy except for the Back Bay and Interstate 495 North. In fact, the Back Bay suffered an occupancy loss of 6.5 percent amid a rash of snowstorms. The downtown led the occupancy growth at 10.1 percent, partially helped by room nights generated by the U.S. Figure Skating Championship.
In addition, all submarkets experienced increases in ADR except for the Interstate 495 North. The Back Bay led the ADR growth at a significant 7.6 percent increase. The Downtown achieved the highest occupancy among all submarkets at 64.6 percent.
Researchers found at least one trend for January 2014. Major snowstorms in January helped fill hotels near Logan International Airport. But the bad weather caused cancellations of room nights, resulting in occupancy losses at other hotels in the region.
January 2014 performance for Greater Boston area hotels was highest in occupancy since 2006, ADR since 2008, and RevPAR since 2006. The best January for the region over the last nine years was 2006 with a RevPAR of $87.68.
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