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New England Lodging Market Trends 1995-2002

Explore the lodging market trends in New England from 1995 to 2002, including occupancy rates, daily rates, and forecast for the industry. Learn about regional statistics, recovery strategies, and tips for hotel management in a changing market.

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New England Lodging Market Trends 1995-2002

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  1. 76 Canal Street, Boston, MA. 02114 ~(617) 722-9916 238 South State Street, Newtown, PA 18940 ~ (215) 579-1804 Pinnacle Advisory Group www.pinnacle-advisory.com

  2. New England Historic Perspective 1995 – 2000 Record Years for the Lodging Market

  3. New England Occupancy1995 - 2000 Source: PAG and STR

  4. New England Average Daily Rate1995 - 2000 Source: PAG and STR

  5. New England REVPar 1995 - 2000 • 1995 - $47.37 • 1996 - $51.33 • 1997 - $56.04 • 1998 - $58.65 • 1999 - $63.35 • 2000 - $70.32 Source: PAG and STR

  6. Occupancy by State 1996 - 2000 75% 70% 65% 60% 55% 1996 1997 1998 1999 2000 - MA. - VT. - R.I. - CT. - N.H. - ME. Source: PAG and STR

  7. Average Daily Rate by State 1996 - 2000 Source: PAG and STR

  8. REVPar by State 1996 - 2000 Source: PAG and STR

  9. Innkeepers Occupancy Rate 1999-2000 19992000 • Connecticut 65.7% 66.7% • Maine 59.4% 62.1% • Massachusetts 64.0% 66.4% • New Hampshire 44.6% 45.5% • Rhode Island 66% 63.1% • Vermont 61.3% 58.9% Source: PAG and STR

  10. Innkeepers Average Daily Rate1999 - 2000 1999 2000 Connecticut $83.39 $85.56 Maine $136.32 $136.44 Massachusetts $100.03 $136.44 New Hampshire $111.72 $119.95 Rhode Island $152.95 $173.83 Vermont $153.18 $163.56 Source: PAG and STR

  11. 2001 ~ The Industry’s Downturn • Pre September 11: Economy slowed and recession neared • Post September 11: Terrorist attacks accelerate recession

  12. Y-T-D July 2001 Occupancy by State 2001 2000 • Connecticut 64.5% 66.7% • Rhode Island 65.4% 71.8% • Massachusetts 63.8% 68.3% • Vermont 56.5% 57.5% • New Hampshire 59.0% 59.0% • Maine 56.1% 57.1% Source: PAG and STR

  13. Y-T-D July 2001Average Daily Rate by State Source: PAG and STR

  14. Y-T-D July 2001New England Regional Occupancy Source: PAG and STR

  15. Y-T-D July 2001New England RegionalAverage Daily Rate Source: PAG and STR

  16. 2001 & 2002 ForecastNew England Lodging @ $105 @ $103 Source: PAG and STR

  17. What Does This Mean To You? • Hardest hit – hotels that cater to conventions, corporate travel, & airport locations. • Hardest hit – destination resorts that require air travel (ie. Hawaii). • Hardest hit – markets with an oversupply of hotels.

  18. ~ Plan of Recovery ~ • Marketing – focus on regional travel to build occupancy • Room Rates – don’t be quick to drop rate; monitor competition closely; entice travelers with packages • Product – prioritize capital spending; only do what’s necessary • Bottom Line – make expense cuts; but not at the expense of losing business • Stay on top of issues – work with various agencies; know about airline discounts; speak with area attractions and other demand generators

  19. 76 Canal Street, Boston, MA. 02114 ~(617) 722-9916 238 South State Street, Newtown, PA 18940 ~ (215) 579-1804 Pinnacle Advisory Group www.pinnacle-advisory.com

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