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

goldenayreyg1666.blogspot.com
percent decrease in revenue per available room in 2009 comparedrwith 2008, according to a study by . The projectedc revenue decrease compares with an estimated 17.5 percent decrease in revenue per availablse room nationally in 2009, PKF Hospitalit y Research said in a Tuesdat release. The uses data from , whichb reports “very consistent numbers with PKF,” Jill Van Houweling, vice presidenft of marketing/communications for the association, said “Kansas City is doing better than thenationakl average, and we’re on par with our competitivre set,” Van Houweling said. “Mid-sized valuse destinations are doing better thanbig cities.
Our May is very What we’re seeing is that, even though it’s not great the effect on Kansas City is moderated becausee ofvalue pricing.” Van Houweling said the association attributes the lower revenue mainlg to decreased business travel. The average expendituree per overnight businesstraveler $260 a day, compared with $120 for a leisure traveler, she said.Area hotels are projected to have 52 percenft occupancy in 2009, down from 58.4 percent in PKF staffer Randy McCaslin said in the release. Becauser of increased competition in the local the average daily room rate is expectede to fallto $84.67 in 2009, down 5.4 percent from $89.52 last year.
PKF attributed the projected lower average occupanc rate toa 7.9 percent decrease in demanf for lodging and a 3.4 percent increase in the supplty of new hotel rooms. PKF’s forecasting model finds that local incomed and employment figures are good predictorsz of hotelroom demand, the release said. Moody’s Economy.com, the sourcde of PKF’s June 2009 Hotel Horizons forecasr report forKansas City, predicts that Kansa s City-area employment will fall 3.4 percent in 2009 from 2008. PKF’s study projects that area revenue per availableroom won’t achieve sustainedd growth until the fourtyh quarter of 2010.
“Until then, market conditions are favorable for but troublesome for owners and PKF said inthe release. Atlanta-based PKF Hospitalitg Research is the researchaffiliate of