Occupancy for 2000 was 70.3 percent, a record high level according to Pinnacle, which has been tracking the Massachusetts and Boston/Cambridge Market performance since 1991 in its publication, the Pinnacle Perspective. Roginsky pointed out that while it�s difficult to match a strong convention year like 2000, the market has also been negatively affected by significant declines in corporate and leisure demand.  

According to the Pinnacle Perspective, the market�s average rate grew by 4.4 percent to $174.90 for the first four months of the year.  Roginsky indicated that this was lower than expected and well below last year. 

Due to the softening economy and the market�s weaker than expected performance Pinnacle has had to adjust its 2001 forecast downward.  �After interviewing most of the hotels in the market and reviewing the city�s group booking pace, we felt and adjustment was necessary,� said Matt Arrants a Director in the Boston office.  In particular, he cited cutbacks in corporate travel and evidence of weaker leisure demand such as the availability of rooms during Harvard Graduation.  Because of these declines monthly occupancy levels are expected to lag behind 2000 until the fourth quarter when an increase in convention demand will help to lift the market.  

Based on its analysis, Pinnacle is projecting a three and a half point decline in occupancy rates from approximately 78.5 to 75 percent.  Average rates for the market are expected to grow by only 3.5 percent, their lowest level since 1992.  

Pinnacle Advisory Group is a national hospitality consulting firm specializing in market research, appraisals, and asset management.  In addition, the firm provides brokerage services through its subsidiary, Pinnacle Realty Investments. The firm has offices in Boston, Philadelphia, Portland, and Houston.