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Greater Boston Lodging Outlook 2003

Discover the lodging market trends and projections for Greater Boston in 2003. Insights on key performance indicators, demand drivers, supply growth, and market projections. Essential information for stakeholders in the hospitality industry.

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Greater Boston Lodging Outlook 2003

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  1. GREATER BOSTON LODGING OUTLOOK 2003 Rachel J. Roginsky, Principal Pinnacle Advisory Group

  2. WWW.PINNACLE-ADVISORY.COM

  3. U.S. Lodging Market

  4. Total United StatesKey Performance Indicators Percent ChangeMay Year to Date Source: Smith Travel Research Note: Preliminary May 2002

  5. New England Lodging Market

  6. New England States YTD May 2002 Change in Occupancy, Average Rate and RevPAR Source: Smith Travel Research

  7. Suburban Boston Lodging Market

  8. Suburban Boston Occupancy 1996 - 2001 Source: Smith Travel Research

  9. Suburban Boston Average Daily Rate 1996- 2001 Source: Smith Travel Research

  10. Suburban BostonRevPAR 1996 - 2001 Source: Smith Travel Research

  11. Suburban Boston YTD May 2002 2001 2002 % Chg Occupancy 62.3% 53.8% -13.6% Average Daily Rate $111.61 $96.66 -13.4% RevPAR $69.49 $51.98 -25.2% Source: Smith Travel Research

  12. Suburban Boston Change in Occupancy, Average Rate and RevPAR by Quarter 1Q 2001 - 2Q 2002 Source: Smith Travel Research

  13. Suburban Boston 2002 * Limited Boston Related Demand * Improved Corporate Demand * Slower Supply Growth * Limited ADR Growth * 9/11 Effect (Year over Year Growth)

  14. Suburban Boston 2002 Projection 2001 2002 % Chg Occupancy 61.4% 61.6% 0.3% Average Daily Rate $108.30 $98.36 -9.2% RevPAR $66.50 $60.59 -8.9%

  15. Suburban Boston 2003 * Lack of Boston-Related Demand * Improved Corporate Demand * Limited Supply Growth * Minor ADR Growth

  16. Suburban Boston 2003 Projection 2002 2003 % Chg Occupancy 61.6% 64.8% 5.3% Average Daily Rate $98.35 $101.13 2.8% RevPAR $60.58 $65.53 8.17%

  17. Boston / Cambridge Lodging Market

  18. Boston/Cambridge Occupancy 1997 - 2001 Source: Pinnacle Perspective

  19. Boston/Cambridge Average Daily Rate1997-2001 Source: Pinnacle Perspective

  20. Boston/Cambridge RevPAR1997 - 2001 Source: Pinnacle Perspective

  21. Boston/Cambridge 2001 Change in RevPAR by Market Area Source: Pinnacle Perspective

  22. Boston/Cambridge YTD June 2002 2001 2002 % Chg Occupancy 71.4% 68.8% -3.9% Average Daily Rate $188.63 $163.51 -13.3% RevPAR $134.70 $112.56 -16.4% Source: Pinnacle Perspective

  23. Boston/Cambridge YTD June 2002 RevPAR Change By Market Area Source: Pinnacle Perspective

  24. Boston/Cambridge Occupancy by Quarter 1Q 2000 – Q4 2002 Source: Pinnacle Perspective

  25. Boston/Cambridge Average Daily Rate by Quarter 1Q 2000 – 2Q 2002 Source: Pinnacle Perspective

  26. Boston/Cambridge RevPAR by Quarter1Q 2000 – 2Q 2002 Source: Pinnacle Perspective

  27. Boston/Cambridge Change in Occupancy, Average Rate and RevPAR by Quarter 1Q 2001 - 2Q 2002 Source: Pinnacle Perspective

  28. Boston/Cambridge 2002 • * Corporate Demand • Some signs of improvement • The recovery? • * Leisure Demand • Likely to remain strong • Rate Driven and Regional • * Group Demand • Pace is ahead of ’01 the rest of the year • * New Supply • Minor – Only 1.9 percent

  29. Boston Cambridge 2002 Projection 2001 2002 % Chg Occupancy 69.6% 72.0% 3.4% Average Daily Rate $182.91 $172.10 -5.9% RevPAR $127.31 $123.91 -2.7%

  30. Boston/Cambridge 2003 • * Corporate Demand • Continued Improvement • Negotiated Rates are flat to –10% • * Leisure Demand • Return of International • Increased Rates after 1Q • * Group Demand • Weak 1Q, Moderate Remainder • * New Supply • Major – 5.5%

  31. New Supply 2002 - 2003 • Nine Zero – 6/02 • Hampton Inn Cambridge – 6/02 • Ritz Carlton – 11/02 • Commonwealth Hotel – 9/02 • Kimpton Cambridge – 3/03 • Residence Inn C’Town – 3/03 • Embassy Suites – 3/03

  32. Boston Cambridge 2003 Projection 2002 2003 % Chg Occupancy 72.0% 71.0% -1.4% Average Daily Rate $172.10 $176.40 2.5% RevPAR $123.91 $125.25 1.1%

  33. GREATER BOSTON LODGING OUTLOOK 2003 Rachel J. Roginsky, Principal Matthew R. Arrants, Director Pinnacle Advisory Group

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