2006 Projections for the Boston/Cambridge Lodging Market
BOSTON, MA, February 6, 2005. Pinnacle Advisory Group announced today that it is projecting that Revenues Per Available Room in Boston will grow by 10.6 percent in 2006. In its annual outlook presentation in July 2005 Pinnacle projected growth of 9.7 percent.
According to Matthew Arrants, Managing Director of Pinnacle Advisory Group, 2006 is shaping up to be a banner year for the market. "In addition to the record 29 citywide conventions on the books, the winter leisure advertising budget for the state more than doubled this year, and the economy continues to grow." Arrants noted that the strong convention year is reflected in the amount of group demand currently on the books, which is approximately 24 percent ahead of 2005.
New Supply, while always a concern, is not expected to have a major impact on market performance in 2006. While there are two new hotels scheduled to open, their impact will be mitigated somewhat by their timing. The 791-room Westin Waterfront hotel will not be opening until late June or early July and the 424-room Intercontinental will come on line in October. The net impact is an increase in supply for the Boston Cambridge market of only 3.0 percent on an annualized basis.
Pinnacle is projecting that occupancy levels in 2006 will be 76 percent (an increase of approximately one point) while average daily room rate will grow 9.0 percent to $191.50 resulting in RevPAR of $145.16.
Pinnacle Advisory Group is a national boutique hotel consulting firm specializing in market demand studies, appraisals, asset management and litigation support .
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