Somerville, MA Releases Hotel Market Study

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. October 14, 2008

MARCH 12, 2007. Mayor Joseph A. Curtatone has announced the completion of a study examining the feasibility of hotel development in Somerville over the next ten years. The new study examines market demand for hotels in five different areas of the city - Davis Square, Route 28/McGrath Highway, Union Square, Inner Belt and Assembly Square - and concludes that a range of local and regional economic factors creates a strong nearterm market for two new hotels, one along the Route 28 corridor and one in Davis Square. Pinnacle Advisory Group of Boston, a leading consulting firm in the hospitality industry, also concludes that there will be longer-term demand for a new hotel in the Union Square area.

"We commissioned this study as part of the city's strategic marketing effort," said Curtatone, "and the results certainly underscore the city's strong economic position. It also confirms the very real opportunities we have over the next few years to play an even bigger role in the area hotel market. The Route 28 Corridor is a major regional transportation nexus and Davis Square has emerged as one of the most exciting, convenient and accessible entertainment and dining centers in the entire metro area." In the longer term, the Pinnacle study suggests consideration of Union Square as a location for a hotel, as new transit, roadway improvements and new zoning increase the levels of business, entertainment and pedestrian activity across the entire square. In addition, the study points to the potential of both Inner Belt and Assembly Square and recommends regular reassessment of the hotel opportunities in those districts as new transit stations come on line.

In Davis Square, Pinnacle advises that the area has the capacity to support a boutique or select-service hotel of 100-125 rooms that focus on mid-priced accommodations. Pinnacle anticipates average room rates in the $130s-$140s range depending on the service level of the hotel. One of the primary drivers in this market is Tufts University with an annual demand in excess of 7,000 room nights. In examining a number of development sites in Davis Square, Pinnacle highlighted the importance of a site close to the subway station, with good visibility from the main streets and proximity to the square's many amenities.

Along the Route 28 Corridor, Pinnacle recommends a limited-service hotel of 80-125 rooms. They emphasized the importance of visibility and accessibility via Route 28 as well as the convenient access to Cambridge and downtown Boston, allowing a hotel in this area to serve the overflow from the Boston/Cambridge market. As in Davis Square, Pinnacle anticipates average room rates in the $130s-$140s range depending on the service level of the hotel.

The Mayor's Office of Strategic Planning and Community Development announced that it has already begun seeking proposals from regional and national hoteliers and developers for the areas and locations identified in the Pinnacle report. "This type of expert study gives us an important marketing tool, as well as helping inform a public discussion of the types of hotel service that will or won't work in a given neighborhood," said Curtatone. "I look forward to discussing the possibilities with the Chamber and other local business groups as well as community groups throughout the city."

The completed study is available on the city's website at www.ci.somerville.ma.us. Please contact Alice Martin or Chris Daveta in the Mayor's Office of Strategic Planning and Community Development at 617.625.6600, x2500 for more information or to view potential development sites.