IRR-Boston Mid-Year Viewpoint 2015 Local Market Report - Lodging
The greater Boston hotel market is in a very auspicious place going into 2015. 2014 was a banner year for the market, as demand for hotel rooms hit peak levels with regards occupancy, ADR, and RevPar. Out of the Top 25 hotel markets in the United States, Boston continues to place at the number 3 spot, behind New York and Hawaii. There are currently 9 hotels under construction in Boston and throughout its suburbs, totally 1,330 rooms. Three properties (totally 640 rooms) are located in Boston’s Seaport District. Construction is anticipated to be completed between 2015 and early 2016.
There is a wave of capital chasing debt and equity hospitality transactions in greater Boston, as evidenced by the recent sale of the Back Bay’s Revere Hotel (acquired by Pebblebrook) and the Fairmont Battery Wharf Hotel (acquired by Westmont Hospitality Trust, and to be rebranded as The Battery Wharf Hotel and Spa). Additionally, Boylston Properties recently secured $56.5 million in permanent financing for their 175-room Residence Inn Boston/Back Bay.
The Boston and Cambridge hotel market has performed well in the past 18 months, as occupancy stands at or near 77% and RevPAR stands at $166—a healthy increase from 2011, during which occupancy stood at 71% and RevPar at $130.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.