News for the Hospitality Executive
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.
About Pinnacle Advisory Group
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.
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