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Explore the impact of 9/11, economic recession, and other factors on Boston/Cambridge lodging market from 2001 to 2002. Detailed occupancy rates, average rates, and RevPAR data provided.
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September 11, 2001 • Fear of Travel • Economic Recession
MOTT Survey 2001 Operator Forecasted Declines as a direct result of 9-11 Boston/Cambridge Occupancy –6 Points Avg Rate –5% SuburbanBoston Occupancy –7 Points Avg Rate – 5%
Suburban Boston 2001 Occupancy: 62% (Down 11 Points) Average Rate: $109 (Down 2 Percent) RevPAR: $68 (Down 17 Percent)
Boston / Cambridge 2001 Occupancy: 69% (Down 9.5 Points) Average Rate: $186.49 (Down 7 Percent) RevPAR: $128.57 (Down 18 Percent)
Factors Affecting The Suburban Boston Lodging Market In 2002 New Supply Still Significant (6% vs 8%) Citywide Conventions Worse (15 vs. 17) The Economy Worse Than Expected
Suburban Boston 2002 Occupancy: Up Two Points to 64 Percent Average Rate: Down 2 Percent to $107.30 RevPAR: Down 1 Percent to $68.73
Factors Affecting The Boston/Cambridge Market In 2002 Supply Changes Citywide Conventions Non-Citywide Group Demand Corporate Demand Leisure Travelers
Supply Changes No Change In Short-Term 2.4 Percent Increase in 2001 4.0 Percent increase in 2002 Projects: Hampton Inn Commonwealth Hotel Nine-Zero Embassy Suites Renovation of Ritz Carlton
Citywide Conventions 15 Citywides (Down From 17) Loss Of Seybold will impact April Now 2Q Looks Weak (In addition to 1Q)
Non-Citywide Group Demand In-House Group Pace is now off Pace Improves in 2H 02 (with economy?) Cambridge pace is not expected to improve
Corporate Demand Slow Recovery Lack of compression from groups will limit ability to drive rate No Forecasted Economic Growth Until 2H ‘02
Leisure Demand “All About Rate” Increased Supply in Suburbs Decline In International Travel
Boston / Cambridge 2002 Occupancy: Up 1 Point to 70 Percent Average Rate: Up 1 Percent to $189 RevPAR: Up 3 Percent to $131