IRR-Coastal New Jersey Mid-Year Viewpoint 2015 Local Market Report - Lodging
Occupancy within the local lodging market has remained relatively stable over the past several quarters. The Coastal New Jersey market is highly seasonal and is influenced more by weather, special events, and tourism expenditures as compared to other regional markets. The Atlantic City market represents the largest concentration of full-service lodging amenities within the Coastal New Jersey area. Specific to the Atlantic City market, there were a significant number of casino closures over the past 12 months.
Notwithstanding these closures however; the Atlantic City market experienced a rise in their ADR over the past year and stronger occupancy was also reported at the facilities which remain open. Clearly, this is a positive sign for an otherwise beleaguered market. The Atlantic City lodging market continues to re-focus their efforts toward building diversified revenue sources as much of the casino revenue lost to neighboring states is not expected to return.
There are other facilities in the more densely developed suburban communities within Monmouth, Ocean, Atlantic and Cape May Counties, as well as a large concentration of smaller lodging available to serve the summer tourists within the barrier island areas. These seasonal operators have reported strong summer occupancy levels during 2014 and are gearing up for the 2015 summer tourism season. Much of the damage to the barrier island infrastructure as a result of Super Storm Sandy has been rebuilt and seasonal operators are expecting a more normal summer tourism season for 2015. Overall, the market remains in the initial stages of recovery and the limited new construction has helped keep occupancy and ADR’s strong and we expect this trend to continue.
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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.