News for the Hospitality Executive |
Pinnacle
Advisory Group Remains Optimistic about the
Boston/Cambridge Lodging Market for
2012
January 3,
2012 - Following a tumultuous summer and fall, Pinnacle Advisory
Group has carefully considered its projections for 2012.
Pinnacle still believes that the Boston and
Cambridge lodging market will be very robust in 2012. The primary
support for
our projections have not changed: 1) the BCEC and the Hynes Convention
Centers
will experience an exceptionally strong year in 2012; 2) the group
booking pace
in the Back Bay, Downtown, and Seaport is up nearly 20 percent compared
to
2011; 3) compression dates for 2012 are
well ahead of 2011; 4) there are numerous tourist events planned that
will
increase leisure travel in 2012, and 5) corporate travel is expected to
grow
slightly as the national economy continues to recover.
Pinnacle is revising its projections for
2012 down slightly
from 10.4 percent growth in Revenues Per Available Room (RevPAR) to 9.5
percent. Factors affecting the decision
include challenges in increasing corporate negotiated rates, the
European
economic situation, and the market’s strong performance in 2011 (which
is
expected to limit the upside potential in 2012). All submarkets of Boston and Cambridge are
expected to
perform equally well. Strong convention
demand will directly help the large group hotels in the Back Bay and
Seaport
District and indirectly help the hotels in the Financial District and
Cambridge
in the form of overflow demand. Individual
properties likely to benefit most are those that underperformed
relative to the
market in 2011 as they have the most opportunity for upside. Pinnacle Advisory Group (www.pinnacle-advisory.com) is a national, full-service, boutique consulting firm headquartered in Boston. The firm was founded in 1991 and is composed of seasoned professionals – most with more than 20 years experience in the industry. Pinnacle Advisory Group provides a range of services to the hospitality industry including market due diligence, appraisal, asset management, and litigation support. The firm has offices in Boston, New York, and South Florida, however its work spans the globe. |
Contact:
Matthew R. Arrants, ISHC Managing Director Pinnacle Advisory Group 164 Canal Street, 5th Floor, Boston, MA 02114 Boston: Tel: 617.722.9916 | Fax: 617.722.9917 Maine: Tel: 207.781.0922 | Cell: 207.712.2381 www.pinnacle-advisory.com |