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Vacancy Rates Increase at Local Hotels

BOSTON-Occupancy rates at hotels in this area and in Cambridge plummet as the local hotel industry begins to feel the economic pinch. Hotel industry officials would like to see the state do more to stem the fall.

By Naomi Grossman | Updated on May 21, 2001

BOSTON-Occupancy rates at hotels in this area and in Cambridge have plummeted in recent months, as the economic downturn makes its presence felt in this industry. According to the Pinnacle Advisory Group, occupancy rates for hotels in Boston and Cambridge are down 4.8% in the first three months of this year as compared with the same period last year.

The news gets worse. Depending upon the hotel, occupancy rates for the month of April are down from 5% to 15%. “We’ve been hearing from general managers that occupancy is way down,” Arthur Canter, executive director of the Massachusetts Lodging Association, tells GlobeSt.com.

Canter blames the softening economy for the drop. “Corporate business is down, international travel is down, leisure is down–this has a direct impact on the hotel industry,” notes Canter. He is quick to add that the hotel industry has a direct impact on other industries as well. People who stay in hotels eat at local restaurants, shop at local stores, rent cars and take buses. “If we’re down, everything else will be down,” he says.

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