Boston hotels have suffered low occupancy and revenue levels so far in 2020, according to Kalibri Labs’ latest Market Spotlight on Boston, which reviews hotel performance in the market for 2019, 2020 (through July 24), and potential recovery scenarios.
Year to date through July 24, Boston hotel occupancy fell 57.96 compared to the same time last year to a level of 31.26 percent. Guest-paid average daily rate (ADR) declined 31.51 percent year over year to $134.02, and guest-paid revenue per available room (RevPAR) dropped 71.21 percent year over year to $41.89, according to Kalibri Labs.
In June, Boston had one of the lowest occupancy levels among top markets in the country—below 20 percent. Moving into July, revenue has improved little across the market, Kalibri Labs noted. Upper-tier hotels in Boston have suffered the lowest levels of occupancy and revenue generation since the start of the COVID-19 shutdown.
Boston’s recovery to 2019 levels hinges on guests’ return, and group and corporate travel—which accounted for nearly 20 percent of Boston’s total room revenue last year—will likely be in for a slow comeback.
“As we head out of the summer vacation season, any meaningful recovery by vacationers to Boston will have to wait until next year,” Kalibri Labs noted in its report. “Unfortunately, the same may be true for both group and corporate transient guests. However, Boston’s vibrant financial community may recover faster, generating higher levels of travel and hotel stays.”
Ultimately, recovery for Boston hotels may depend on the availability of a COVID-19 vaccine and the return of air travel, the report added.
Read Kalibri Labs’ full Boston Market Spotlight here.