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Pinnacle Advisory Group
Matthew R. Arrants Pinnacle Advisory Group 76 Canal Street Boston, MA 02114 Telephone: Fax: Western Mass Outlook Pinnacle Realty Investments Pinnacle Advisory Group
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Western Massachusetts Outlook
Market Overviews Worcester Springfield Industry Trends Regional Competitive Overview Resort Industry Overview Factors Affecting Demand Pinnacle Projections Berkshires
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Worcester Performance Statistics
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Worcester Occupancy Source: Pinnacle Advisory Group
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Worcester Average Rate 1990-2002
Source: Pinnacle Advisory Group
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Worcester RevPAR Source: Pinnacle Advisory Group
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Worcester Area Supply Growth Average Rate Growth
– 5.3% Average Rate Growth % Average Market Occupancy – 69%
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Worcester – New Supply Residence Inn – 124 Rooms 2004?
Convention Center Hotel – 200 Rooms - January 2005 4 Proposed hotels in Auburn???
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Springfield Performance Statistics
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Springfield Occupancy 1990 - 2002
Source: Pinnacle Advisory Group
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Springfield Average Rate 1990-2002
Source: Pinnacle Advisory Group
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Springfield RevPAR Source: Pinnacle Advisory Group
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Springfield Area Supply Growth Average Rate Growth
% Average Rate Growth % Average Market Occupancy – 65%
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Springfield Area – New Supply
Hilton Garden Inn–143 Rooms - Sept 2002 Boutique Hotel–135 Rooms - April 2005 West Springfield Residence Inn–88 Rooms - January 2002 Chicopee Hampton Inn – 112 Rooms - September 2002 Holyoke Homewood Suites – 120 Rooms – Mid 2004?
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Recent Industry Trends
Shortened Booking Window Limited International Demand Shorter Stays Value Conscious Travelers Increasing Use of the Internet
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Regional Competitive Overview
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Regional Competitive Overview
New England Mountains Now a Four Season Destination Cape and Islands Holding Steady Southeast Connecticut A major new destination Rhode Island Growing as a Destination
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Resort Industry Overview
Northeast Holding Up Well Southeast Lack of International Demand Caribbean and Central America New Supply and Lack of Demand
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Factors Affecting Demand
Terrorism Fear of Flying War in Iraq Uncertainty Economy Lack of Corporate Demand Consumer Confidence Price Sensitivity
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Regional Factors Affecting Demand
Weather Boston Convention Demand Corporate Demand Transportation
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Pinnacle Projections - Worcester
2003 Occupancy Down 2 – 4 points Average Rate down 2 – 4 percent 2004 Occupancy up points Average Rate up 0 – 2 percent
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Pinnacle Projections - Springfield
2003 Occupancy Flat – Up 2 points Average Rate down 1 – 3 percent 2004 Occupancy up 0 – 2 percent Average Rate - Flat
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Pinnacle Projections - Berkshires
2003 Occupancy Up 0 – 2 points Average Rate Up 1 – 3 Percent 2004 Occupancy - Flat Average Rate – Flat – down 2 percent
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Pinnacle Advisory Group
Western Mass Outlook 2004 Rachel J. Roginsky, ISHC Pinnacle Advisory Group 76 Canal Street Boston, MA 02114 Telephone: Fax: Pinnacle Realty Investments Pinnacle Advisory Group
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