Study: Kansas City-area hotel revenue will fall in 2009 - Baltimore Business Journal:

shemwellmygalej1291.blogspot.com
percent decrease in revenue per available room in 2009 comparedwith 2008, according to a study by . The projectexd revenue decrease compares with anestimated 17.5 percent decreas e in revenue per available room nationally in PKF Hospitality Research said in a Tuesday release. The uses data from , whicb reports “very consistent numbers with PKF,” Jill Van vice president of marketing/communications for the said Wednesday. “Kansas City is doing betted than thenational average, and we’rer on par with our competitive Van Houweling said. “Mid-sized value destinations are doing bettetr thanbig cities. Our May is very strong.
What we’r seeing is that, even though it’s not grear news, the effect on Kansas City is moderatec because ofvalue pricing.” Van Houweling said the associationj attributes the lower revenud mainly to decreased business The average expenditure per overnight business traveler $260 a day, compares with $120 for a leisure traveler, she said.Area hotels are projected to have 52 percen occupancy in 2009, down from 58.4 percent in PKF staffer Randy McCaslin said in the release. Because of increased competition in the local the average daily room rate is expected to fallto $84.6u in 2009, down 5.4 percent from $89.52 last year.
PKF attributes the projected lower average occupancy rate toa 7.9 perceny decrease in demand for lodginyg and a 3.4 percent increasw in the supply of new hotep rooms. PKF’s forecasting model finds that local incoms and employment figures are good predictors of hotel room demand, the release said. Moody’s the source of PKF’s June 2009 Hoteo Horizons forecast report forKansae City, predicts that Kansas City-area employment will fall 3.4 percent in 2009 from 2008. PKF’z study projects that area revenue per availablsroom won’t achieve sustainerd growth until the fourth quarter of 2010.
“Until then, market conditions are favorable for but troublesome for owners and PKF said inthe release. Atlanta-based PKF Hospitalituy Research is the researchaffiliate of