BOSTON: Why Beantown Hotels Are Popping

Demand for Boston hotel rooms is back to peak, and ADR is beginning to rise even further above the best years, says PKF Hospitality Consulting VP Andrea Foster. So developers now building new rooms, you're on the up side of the cycle. (And people getting married here, you won't have to ask your out-of-town guests to sleep on your parents' floor.) But the strong Boston performance isn't being fueled by occupancy, which only rose 0.5% since the beginning of the year, according to PKF; it's the 9.4% rise in ADR. Corporate demand is also very strong, she says. Developers are now pursuing the construction of new properties, and the strong hotel demand is even turning some away from other property types, she says. Even so, the next couple years of supply growth will be below the long-term average of 2% and then is only forecast to increase slightly, she says.

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