pinnacle
Boston & Cambridge Lodging Market Recovery to Gain Momentum in 2022
Sebastian J. Colella | February 24, 2022
By Sebastian J. Colella Despite a slow start to the New Year, the Boston & Cambridge lodging market should pick up speed as spring rounds the corner. Like many urban gateway cities, the market has struggled in its recovery from the negative effects of the pandemic. While leisure demand came roaring back once many of the government mandates and restrictions were lifted in the spring of 2021, corporate and group travel was hampered through much of the year. Furthermore, international travel was subject to federal travel restrictions preventing visitors from some of Boston’s largest feeder markets, specifically Canada and Europe. Despit...
Amidst Near-Term Headwinds, the Boston & Cambridge Lodging Market Awaits Recovery
Sebastian J. Colella | January 21, 2021
By Sebastian J. Colella The travel and leisure industry has finally wrapped up 2020; a year like no other, with hotels enduring devastating declines to demand and revenue, job losses across the industry, government restrictions to day-to-day business, and extreme levels of uncertainty. As the United States faces a growing number of COVID-19 cases, surpassing 20 million by year-end 2020, lodging markets across the country continue to face unprecedented declines in demand. The Boston & Cambridge lodging market’s demand, or occupied roomnights, declined approximately 68% in 2020 when compared to 2019. Following its worst performance on ...
Bad vs Horrible – Depends on How Performance Is Measured
Allison Fogarty | November 2, 2020
The importance of considering Total Rooms Inventory (TRI) in measuring Lodging Industry performance. By Allison Fogarty Through the pandemic, hotel Occupancy rates have hit historic lows throughout the country. We have constantly been asked “how bad is it?” Reports early in the pandemic, while awful, seemed to actually understate the catastrophic effect of the pandemic on the hospitality industry. We studied figures provided by STR and other industry analysts and questioned their representatives to fully understand reporting methodologies in an effort to truly understand the current situation in the lodging industry. Unfortunat...
Through August, Greater Boston Lodging Market Ranks as the Hardest Hit by Pandemic
Sebastian Colella | October 6, 2020
By Sebastian J. Colella The Greater Boston market has experienced a 71% decline in room revenue through August when compared to the same time last year, the largest decline of all top-25 markets according to STR. Hotels in Boston and Cambridge, as well as those in the Greater Boston area, began to feel the effects of the ongoing pandemic in early March, before many markets around the country. Declines in lodging demand showed improvement over the summer months as there was an uptick in leisure travel, however, this began to slow towards the second half of August. Despite this slight boost, lodging demand was still down 70% and 62% in July ...
Impacts of COVID-19 on the Boston and Cambridge Hotel Industry
July 8, 2020
By RKG Associates and Pinnacle Advisory Group For 2019, Pinnacle Advisory Group estimated that Boston and Cambridge hotels generated nearly $2 billion in rooms revenue, based on a total supply of nearly 25,700 rooms, an average occupancy of 81.4 percent and an average daily rate (ADR) of $259. Over 13,300 people are employed in the hotel industry sector in Boston and Cambridge. Due to the pandemic and the stay-at-home requirements starting in March of this year, demand for hotel rooms has dropped precipitously. On March 31, Governor Baker began a provision of lodging that was defined as a COVID-19 Essential Service, allowing hotels in th...
Hotels at Secondary and Tertiary Airports Will Suffer Longer
Jenny Lee | May 13, 2020
By Jenny Lee The coronavirus pandemic’s impact on travel is thought to be six or seven times greater than the 9/11 attacks, according to the U.S. Travel Association. Air travel volume fell precipitously through March. The estimated revenue losses by air carriers in 2020 is at least $252 billion. In late March, domestic carriers received a $60 billion bail-out, with some strings attached. The Department of Transportation issued an order that carriers receiving financial assistance under the Coronavirus Aid, Recovery, and Economic Security Act (the CARES Act) are required to maintain minimum air service to all destinations served as o...
Impacts of COVID-19 on the Boston and Cambridge Hotel Industry
April 22, 2020
For 2019, Pinnacle Advisory Group estimated that Boston and Cambridge hotels generated nearly $2 billion in rooms revenue, based on a total supply of nearly 25,700 rooms, an average occupancy of 81.4 percent and an average daily rate (ADR) of $259. Over 13,300 people are employed in the hotel industry sector in Boston and Cambridge. Due to the pandemic and the stay-at-home requirements starting in March of this year, demand for hotel rooms has dropped precipitously, with many hotels closing completely and others only renting rooms to essential workers, often at discounted rates. According to the Pinnacle Perspective, Revenue Per Available ...
Maximizing Your Relationship With OTAs
Tim Lee | January 13, 2020
By Tim Lee The relationship between hotels (particularly major international brands) and Online Travel Agencies (OTAs) may sometimes seem an uneasy alliance. Major hotel companies, such as Hilton, Marriott and IHG, are adding policies on price match guarantees to encourage direct bookings and detract from the perceived value of OTAs. Meanwhile, OTAs push even harder for competitive pricing and invest hundreds of millions of dollars in Search Engine Marketing (SEM) to increase their market share. Due to acquisitions and mergers over the last two decades, most OTA brands are a part of, or work with the two largest players in the space: Bo...
