sebastian colella
Boston & Cambridge Lodging Market: Five Things to Know Heading Into Q4
Sebastian Colella | October 3, 2022
By Sebastian J. Colella Until late spring of this year, the Boston & Cambridge lodging market had been one of the country’s slowest to recover. Due to a number of factors, the market experienced very strong results in Q2 and Q3 and looks to continue those trends in the Q4. 1. Uneven Recovery: Much has been reported on the uneven recovery throughout the country’s lodging markets. The recovery across the different submarkets that make up the Boston & Cambridge lodging market has been equally distorted. Through August, the Fenway/Longwood and the Back Bay submarkets, two more leisure-oriented areas, lead the pack in the market’...
The Boston & Cambridge Lodging Market’s Recovery Projected to Accelerate Into 2022
Sebastian J. Colella | August 4, 2021
By Sebastian J. Colella Despite uncertainties surrounding corporate travel and the return to the office, as well as the Delta variant and the potential for mask mandates and other state or federal restrictions, the Boston & Cambridge lodging market continues to climb a wall of worry. Driven primarily by domestic leisure travel, the market has experienced strong month-over-month gains in demand and average daily rate (ADR) since March. Although the market has experienced considerable gains the last three months it still lags the United States as a whole and almost every other top-25 market in recovering to pre-pandemic levels. Th...
Spring Has Arrived in New England, Bringing With It Hope for Its Lodging Markets
Sebastian J. Colella | March 29, 2021
By Sebastian Colella After a long and grueling 12 months, spring has finally arrived in New England and with it, renewed hope for its lodging markets seems widespread across all six states. Although very little improvement has materialized through Q1 of 2021, there are many indicators that growth in lodging demand is around the corner. The national lodging market has begun to see improvements as hotel occupancy for the week ending March 20 increased to its highest level since early March of last year, according to STR. There are many reasons to believe New England lodging markets will experience similar trends once tourism season is underw...
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 ...
Boston & Cambridge Lodging Market: COVID-19 and Its Impact on Supply
Sebastian Colella | April 6, 2020
Pinnacle has revised projections for 2020 supply change in the Boston & Cambridge lodging market from +3.8% to now -14.4%. By Sebastian J. Colella Life across the United States has changed dramatically in the last four weeks. In Boston, and almost every other city in the country, hotel owners and operators have been forced to make the difficult decision to close temporarily while the country attempts to slow and contain the spread of COVID-19. In Massachusetts those decisions were partially made for them on March 31st. Governor Baker extended his order closing non-essential businesses in Massachusetts through May 4th. This exten...
Boston & Cambridge Lodging Market: Coronavirus Causing Steep Demand Declines, Closures, Layoffs
Sebastian Colella | March 26, 2020
By Sebastian Colella As travel across the country and the world has all but stopped the last few weeks from the threat of COVID19, hotels across the country saw an unprecedented amount of cancellations. The Boston lodging market has been one the hardest hit markets in the United States with demand declining dramatically throughout most of March. Going into the year, owners and operators were worried about increases to supply, estimated at 3.8%, but looked forward to an approximate 25% increase in convention related roomnights and four additional citywides at the city’s two convention centers. Following a weak Q4 performance experienc...
The Boston Lodging Market: What the Supply Surge Means Moving Forward
Sebastian Colella | August 19, 2019
At year-end 2018, the Boston and Cambridge lodging market was comprised of 105 hotels with approximately 24,000 rooms. While this has grown considerably in four years, lodging supply in this market remains small relative to other major gateway cities. The ongoing building boom in Boston and Cambridge has contributed greatly to the recent surge in lodging supply and is expected to continue through 2021 and beyond. What does the pipeline of hotel development, its largest in recent history, mean for the Boston lodging market’s performance? Recent & Continued Supply Growth Between 2000 and 2014, rooms supply in market increased at ...
Boston & Cambridge Lodging Market Peaks in 2018 as Demand Outpaces Supply
Sebastian J. Colella | February 1, 2019
Sebastian J. Colella The Boston and Cambridge lodging market accommodated approximately 7.5 million roomnights in 2018, growth in demand of 3.4% from the prior year. The market's supply increased 2.8% with the opening of four new hotels and a guestroom expansion which combined for approximately 760 new rooms available nightly. As a result of these dynamics, the market's occupancy increased 0.3% to 82.7%, its highest point in history. Despite the market's continued demand growth and capacity constraints through much of the year, average daily rate (ADR) increased only 1.6% to $262. Similar to the trends experienced nationally, the market...
