Hotel owners/franchisees need to keep an eye on their market. What is your market's average daily rate, occupancy and total revenue per available room? Are you getting your fair share? What are your opportunities to expand or grow business?
These questions pertain to everyone in the industry, from operations to acquisitions, and knowing the market can make or break any deal.
STR and Lodging Econometrics can provide data to give hoteliers a better grasp of a market. As part of our market snapshot series, today Hotel Management sets its sights on Pittsburgh, Pa.
WHAT’S GOING ON
According to STR, Pittsburgh is seeing its first positive year-ending occupancy numbers in two years, rising 2.9 percent to 68 percent from December 2013 to December 2014. Additionally, the Steel City’s average daily rate reached $116.21, a modest 3.2 percent over 2013, while revenue per available room rose 6.2 percent to $78.98. The city’s supply increased 1.3 percent to 9,048,999 rooms, while demand jumped 4.3 percent to 6,149,982 rooms, a large increase over 2013’s drop of 0.05 percent. Overall, revenue for Pittsburgh was up 7.6 percent, reaching $714.6 million by the end of 2014.
Lodging Econometrics reported that, by the end of 2014, Pittsburgh had 221 hotels in operation, accounting for 25,608 rooms. The city has 58 projects in its construction pipeline, which will bring 6,437 additional rooms to the market. Twenty-three of these projects are under construction, and 20 are scheduled to begin construction during the next 12 months. Last year was much more ambitious compared to 2013, when Pittsburgh’s pipeline consisted of only 46 properties (accounting for an estimated 4,900 rooms). This was an increase of approximately 26 percent in projects, outpacing the overall U.S. pipeline, which was up 21 percent year-over-year.
◾ Hotel Monaco Pittsburgh (435 6th Ave.; 248 rooms; opened January 2015)
◾ Embassy Suites Pittsburgh (535 Smithfield Street; 229 rooms; scheduled to open Q1 2015)
◾ Drury Inn & Suites Pittsburgh (301 Grand Street; 206 rooms; scheduled to open mid-2016)
Watch for more in Hotel Management's market snapshot series throughout 2015. If there is a particular city you'd like us to dig into, reach out to [email protected].