Boston – In Boston, the hotel industry had a strong end to 2018 and CBRE is projecting a 4.3 percent supply increase and 3.3 percent demand increase for 2019, according to the latest forecast from CBRE Hotels Americas Research.
In 2020 supply is expected to increase 3.3 percent and demand is expected to increase 2.8 percent. Average daily rates (ADR) are also projected to climb in Boston; rates grew 1.6 percent in 2018 and are projected to grow 1.1 percent in 2019 and 1.6 percent in 2020.
“RevPAR growth in Boston in 2018 was led by the suburbs, while demand continued to be strong in the Boston core, though offset by a continued ramp up in supply growth,” said Mark VanStekelenburg, managing director of CBRE Hotels.
Continued favorable economic fundamentals are expected to lead to U.S. hotel rooms revenue per available room (RevPAR) growth of 2.5 percent in 2019 and 2.0 percent in 2020. In Boston, RevPar is expected to increase 0.1 percent in 2019 and 1.1 percent in 2020.