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Local Hotel Market Continues to Suffer

BOSTON-The latest figures compiled by Torto Wheaton Research indicate that over the past year this area's hotel market experienced the country's second-greatest decline in RevPAR. The terrorist attacks and the economic downturn are to blame.

By Naomi Grossman | Updated on February 13, 2002

BOSTON-The terrorist attacks of Sept. 11 along with the economic downturn continue to wreak havoc on the local hotel market according to the latest figures compiled by Torto Wheaton Research, a real estate research firm.

From the fourth quarter of 2000 to the same period last year, RevPAR declined 35% for Boston, which is the second largest decline in the country. Only San Francisco–with 40%–experienced a greater decline in that time period. Petros Sivitanides, a senior economist at Torto Wheaton, attributes the staggering decrease in demand to the continued effects of the terror attacks, especially on business travelers. “There is still a stigma effect Sept. 11 created on travel,” he tells GlobeSt.com.

The occupancy rates for this area are a further indication that the impacts of the terror attacks are still lingering. Those rates decreased 15.7% from the fourth quarter of last year to the fourth quarter of this year, a ” huge decrease” according to Sivitanides. The number of occupied rooms decreased 17% in that time period as well.

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