Report: Portland hotels to outperform nation - Bizjournals.com
Rising demand for hotel rooms coupled with no corresponding increase in supply will deliver rosy results to Portland hotel operators this year and next.
PKF Hospitality Research on Wednesday said Portland hotels will outperform the nation in 2011, with revenue expected to increase at a faster pace than average. Portland hotel revenue will increase 9.1 percent this year, compared to 7.2 percent nationwide, PKF said in its fall edition of Hotel Horizons.
The latest figures represent a turnaround for PKF, which lowered its 2011 revenue projections for Portland to 6.9 percent in July from 7.1 percent in March.
"Our reading of the economic tea leaves is that 91 percent of the people in the labor force have jobs, the unemployment rate among educated workers who make up a large share of the traveling public is less than five percent, and employed workers are receiving real wage increases. Total real personal income has already recovered and surpassed its historical peak. Moreover, corporate profits keep soaring to new highs which add layers of confidence for spending on business travel," said John B Corgel, senior advisor to PKF.
PKF said Portland hotels will benefit from a 4.8 percent increase in occupancy coupled with a 4.1 percent increase in average room rates.
The growth is being driven by a 5.5 percent increase in demand for lower-priced hotels and a 4.5 percent increase in upper-priced ones.
PKF projects the good times will extend into 2012, when revenue will grow another 9.2 percent in 2012.
There are just two hotel projects totaling 291 rooms proposed for the market — one each in downtown Portland and in Beaverton. Construction hasn't started on either one.
22 Sep, 2011Wendy Culverwell covers real estate, retail and hospitality.
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