KONICA MINOLTA DIGITAL CAMERA
Thomas Grillo
Real Estate Editor- Boston Business Journal
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More than three dozen commencement ceremonies and eight conventions boosted occupancy rates and revenue at Greater Boston’s hotels in May, according to a new survey by PKF Consulting.
A survey of 97 hotel operators in Greater Boston determined that the region’s average occupancy rate was 83.8 percent and average daily room rate was $222.68, resulting in an average $186.50 revenue per available room for the month. The performance levels represented an occupancy increase of 3.3 percent, an 8.6 percent increase in ADR, and an overall 12.2 percent increase in RevPAR for May 2014 as compared to May 2013.
In May 2013, the region’s average occupancy rate was 81 percent, ADR was $205 and RevPAR was $166.15.
Four submarkets saw occupancy gains in May. The Route 495 North and Route 128 markets led the region in occupancy increases, posting 9 percent and 8.3 percent year-over-year gains, respectively. The Back Bay and the Downtown each saw occupancy increases of 3.3 percent. Conversely, Route 495 South and Cambridge witnessed small occupancy decreases of 2 percent and 0.4 percent respectively.
At 88.7 percent, the Downtown achieved the highest occupancy rate among all submarkets, followed closely by the Back Bay at 88.3 percent.
All submarkets experienced positive gains in daily room rates. Downtown and Route 128 saw ADR increases of at least 8.9 percent.
Hotels were helped by twice as many conventions in May compared to a year ago. May 2014 had eight conventions, compared to four in May 2013, according to the Massachusetts Convention Center Authority.
The region’s submarket May highlights included:
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