Kalibri Labs Ahead of the Curve: Miami, FL

Kalibri Labs Ahead of the Curve: Miami, FL Boston's occupancy levels have been generally stable and well above their 20-year average since 2011. The year-end 2019 level of 75.6% was meaningfully higher than the longer-term average of 70.2%. RevPAR increased at an average annual rate of less than 0.8% since 2015, well below the Top 25 market average increase of 1.2% for the period. While occupancy levels pre-pandemic were attractive, strong supply increas- es and weakening international travel demand caused by a strong U.S. dollar environment hurt pricing power in recent years in Boston. • The estimated decline in the Boston hotel occupancy level from 2019 to year-end 2020 is -61.1%, significantly worse than the Top 25 market average decline of -48.3%. As a result of this weak occupancy level, the estimated decline in ADR for Boston in 2020 is significantly more than that of the Top 25 market average (-38.5% vs. -26.4%). These Occupancy and ADR contraction levels are expected to have resulted in a -76.0% decline in RevPAR for Boston in 2020 (vs. a -61.9% for the Top 25 market average). The Boston 2020 RevPAR contraction is one of the worst among the 65 markets tracked closely by CBRE (In contrast, the national RevPAR level is estimated to have declined by 50.9%; Jacksonville by 36.1% and Tucson by 34.2% in 2020 - best in the nation).

Tags: Travel, Boston, Miami, Jacksonville, Tucson

Source:  http://www.hospitalitynet.org/news/154000320/4102487.html