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Report: Boston Hotel Performance to Decelerate Through 2020
RevPAR in Boston is expected to increase by 0.3% in 2019, decrease 1.3% in 2020, and increase 0.3% in 2021, according to CBRE Hotels Research’s September 2019 Hotel Horizons report.
CBRE projects a 3.8% supply increase and 2.1% demand increase in Boston for 2019. In 2020, supply is expected to increase 6.2%, and demand is expected to increase 4.7%. Average daily rates are also projected to climb in Boston by 1.9% in 2019 and 0.2% in 2020.
“Boston’s supply and demand continue to grow in both the lower- and upper-priced services through 2021,” said Mark VanStekelenburg, managing director of CBRE Hotels.
“Specifically, in the CBD, lower-priced supply is seeing significant growth. Of the approximate 2,500 rooms under construction, roughly 500 are considered lower-priced, or 20%. The CBD itself is currently only 10% lower-priced. The significant growth in lower-priced supply in the CBD submarket partly contributes to the slower ADR growth rates projected for the greater market.”
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