Rachel J. Roginsky, ISHCDaniel C. Hanrahan II, MAI, CRE
Gregory T. Bohan
76 Canal Street, Boston, MA 02114 ~ 617/722-9916 238 South State Street, Newtown, PA 18940 ~ 215/579-1804
3418 Norfolk Street, Pompano Beach, FL. ~ 954/786-2019
www.pinnacle-advisory.com
National Trends – Occupancy and ADR
50
55
60
65
70
75
80
85
90
1996 1997 1998 1999 2000 2001 2002 2003
Occupancy (%)
ADR ($)
Peak $86.64July 2001
$83.33December 2003
Peak 65.2%June 1996 59.3%
December 2003
Top and Bottom 5 Markets – Percent RevPAR Change 2003
-19.6
-14.7-11.9
-9.5-7.5
0.4
4.4 4.46.4 7.4 8.1
-25
-20
-15
-10
-5
0
5
10
Salt Lake City
, UT
San Jose, CA
Oakland, CA
Boston, MA
Houston, TX
Total U.S.
Norfolk-VA Beach, V
A
Anaheim-Santa Ana, C
A
Fort Lauderdale, F
L
Oahu Island, HI
Miami-Hialeah, F
L
Top 5
Bottom 5
Historical Trends
•Occupancy
•ADR
•RevPAR
Historical Trends by Area
Historical Trends
•Occupancy
•ADR
•RevPAR
Historical Trends by Area
Boston / Cambridge
Boston / Cambridge Occupancy 1990 – 2003
Boston / Cambridge ADR 1990 – 2003
Boston / Cambridge RevPAR 1990 – 2003
Boston/Cambridge 2003 by Area
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
Back Bay Downtown Other Cambridge
Occupancy
Avg Rate
RevPAR
•Commercial Demand
•Leisure Demand
•Group Demand
•New Supply
•Projections
•Commercial Demand
•Leisure Demand
•Group Demand
•New Supply
•Projections
Boston / Cambridge Outlook 2004
•Improving Economy•Growth in High Tech Industries•Financial Services
Improving Stock MarketConsolidation
•Pharmaceutical and Biotech
•Improving Economy•Growth in High Tech Industries•Financial Services
Improving Stock MarketConsolidation
•Pharmaceutical and Biotech
Commercial Demand
•Improving Economy•Weak Dollar•More Stable Geopolitical Situation•New Low-Cost Air Carriers
•Improving Economy•Weak Dollar•More Stable Geopolitical Situation•New Low-Cost Air Carriers
Leisure Demand
•Strong Citywide Demand18 vs 15 in 2003
•Strong Short Term Pick-upAdded 2 Large Groups (1,500+ on Peak)
•Group Definites at the “Big 6” are 14% above last year
•Strong Citywide Demand18 vs 15 in 2003
•Strong Short Term Pick-upAdded 2 Large Groups (1,500+ on Peak)
•Group Definites at the “Big 6” are 14% above last year
Group Demand
• Courtyard at 88 Exeter – Back Bay – 81 Rooms - April
•Hotel Onyx – N. Station – 112 Rooms – May
•Jurys Doyle – Back Bay – 220 Rooms – June
•Clarion – N. Station – 88 Rooms – June
•Hampton Inn and Suites – Crosstown
– 175 Rooms – June
• Courtyard at 88 Exeter – Back Bay – 81 Rooms - April
•Hotel Onyx – N. Station – 112 Rooms – May
•Jurys Doyle – Back Bay – 220 Rooms – June
•Clarion – N. Station – 88 Rooms – June
•Hampton Inn and Suites – Crosstown
– 175 Rooms – June
Boston/Cambridge New Supply 2004
New Supply 2005-2007
Hotels Rooms2005 1 164
2006 5 1,841
2007 & Beyond
13 4,953
PAG Projections 2004
2003 2004 Change
Occupancy 70.3% 72.3% 2.8%
Average Rate
$152.71 $155.76 2.0%
RevPAR $107.36 $112.61 4.9%
1.6 million square feetThird largest in the Mid Atlantic and Northeast
Grand Opening June 24, 2004Westin Headquarters Hotel Open June 2006
Boston Convention and Exhibition Center
•Closure of the HynesCould be sold July 1, 2006
•Room BlocksBCEC Groups will be required to use Back Bay Hotels
•Marketing Leadership•Facility•Location
The Future Of the Boston Convention Market
Boston is no longer a “Backwater”Completion of the Big Dig is already having a positive effect
World-Class Convention CenterExcellent Transportation Infrastructure
$14.6 Billion on Big Dig$1.2 Billion on Logan Modernization
The Changing Face of Boston
Nationally: the floodgates are wide open
Boston: the gates are still closed
Capital Markets
76 Canal Street Boston, MA 02114 ~ 617/722-9916238 South State Street, Newtown, PA 18940 ~ 215/579-1804
3418 Norfolk Street, Pompano Beach, FL 33062 ~ 954/786-2019
www.pinnacle-advisory.com
PINNACLE ADVISORY GROUP
Top Related