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Published byAshlyn Tate Modified over 9 years ago
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www.pinnacle-advisory.com
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Historic Perspective
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September 11, 2001 Fear of Travel Economic Recession
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MOTT Survey Suburban Boston Occupancy –7 Points Avg Rate – 5% Boston/Cambridge Occupancy –6 Points Avg Rate –5% 2001 Operator Forecasted Declines as a direct result of 9-11
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Suburban Boston 2001
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Source: Smith Travel Research
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Occupancy: 62% (Down 11 Points) Average Rate: $109 (Down 2 Percent) RevPAR: $68 (Down 17 Percent) Suburban Boston 2001
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Source: Pinnacle Advisory Group
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Boston / Cambridge 2001
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Source: Pinnacle Advisory Group
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Occupancy: 69% (Down 9.5 Points) Average Rate: $186.49 (Down 7 Percent) RevPAR: $128.57 (Down 18 Percent) Boston / Cambridge 2001
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Source: Pinnacle Advisory Group
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Suburban Boston 2002
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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
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Occupancy: Up Two Points to 64 Percent Average Rate: Down 2 Percent to $107.30 RevPAR: Down 1 Percent to $68.73 Suburban Boston 2002
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Source: Pinnacle Advisory Group
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Boston / Cambridge 2002
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Factors Affecting The Boston/Cambridge Market In 2002 Supply Changes Citywide Conventions Non-Citywide Group Demand Corporate Demand Leisure Travelers
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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
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Citywide Conventions 15 Citywides (Down From 17) Loss Of Seybold will impact April Now 2Q Looks Weak (In addition to 1Q)
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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
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Corporate Demand Slow Recovery Lack of compression from groups will limit ability to drive rate No Forecasted Economic Growth Until 2H ‘02
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Leisure Demand “All About Rate” Increased Supply in Suburbs Decline In International Travel
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Occupancy: Up 1 Point to 70 Percent Average Rate: Up 1 Percent to $189 RevPAR: Up 3 Percent to $131 Boston / Cambridge 2002
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Source: Pinnacle Advisory Group
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www.pinnacle-advisory.com
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