Boston Hotel Market Well on the Road to Recovery

The Langham (Photo: Shawmut)

Boston— CBRE is raising its forecasts of hotel performance for 2022 and beyond, based on Q1 2022 strength, continued slowing of construction activity, higher inflation and continued optimism about employment and economic growth.In Boston, CBRE forecasts a 27.1% growth in the average daily rate (ADR), a 35% climb in demand and a robust 67.9 % increase in revenue per available room (RevPAR) in 2022 alone. Occupancy in Boston is projected to reach 69.9% in 2023 and 73.8% by 2024. In addition, ADR for 2023 is expected to reach $203.80  and $212.26 in 2024 as compared to $197.23 at year-end 2019. “Boston’s hotel sector is on the upswing, posting higher occupancy and ADR rates in 2022, a trend that is set to increase as the city attracts more leisure demand, group demand,  and corporate travelers,” said Dan Hanrahan, a Senior Vice President of CBRE Hotels Advisory covering the Northeast Division. Despite facing several challenges, such as the Russia-Ukraine war, high gas prices and the pullback in the S&P 500, CBRE Econometric Advisors (CBRE EA) forecasts positive GDP and employment growth and elevated Consumer Price Index (CPI) through 2023.