By Sandra Caffrey and Laura Gregoriadis, CPA
With personal income on the rise and corporate budgets allowing for more travel and entertainment, the hospitality industry is starting to reap the benefits. The Boston hotel industry experienced positive growth during 2011 and experts predict the upward trend will continue into 2012. Revenue per available room (RevPAR) increased by 8.3% during the first three quarters of 2011 compared to prior year. The increase in RevPAR is due primarily to higher occupancy. Although room rates have increased since the industry hit rock bottom, competition still remains strong and corporations are sensitive to pricing.
The outlook for the Boston hotel industry for 2012 is bright. Boston hotels and investors are estimating RevPAR growth for 2012 to be within the range of 5% - 10%. Some other positive signs cited by experts in the Boston area include:
An estimated 38% increase in the number of events scheduled for the Boston convention centers in 2012 over prior year.
For the first time ever, the United States is advertising in other countries to increase U.S. tourism. Whether it is a point of entry or the final destination, Boston will benefit from this marketing effort.
Local tourism groups and industry leaders are working with politicians to reform the visa process and allow easier access for international travel into the U.S.
As the economy fights to recover, increased tourism will not only benefit the hospitality industry, the rewards wiSavell also trickle down to other sectors of the economy. The recovery in the Boston marketplace is ahead of the national average with the hotel industry helping to lead the way.
Tracking trends and key performance indicators is just one of the ways the professionals in the Real Estate group at DGC stay ahead of the curve and add value for clients.
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