CAMBRIDGE, MA In 2000, the Boston/Cambridge lodging market climbed back to 78.5% occupancy after declining in 1999. Much of this was due to strong convention business in the area last year.
But 2001 will not be as strong a year for Boston s convention business, according to Matthew Arrants, director of Pinnacle Advisory Group, which recently released a report on the market. Arrants pointed out that while there were 23 city-wide conventions held in the area in 2000, there are only 17 such events on the books for 2001.
“Last year was a big year a fact that some people attribute solely to the Millennium,” said Arrants. “There ll be less demand associated with the convention center in 2001 than there was in 2000 and we do expect occupancy levels to be negatively affected.”
The anticipated dip in occupancy is not expected to have a negative impact on room rates, however, according to Arrants. “We still expect room rates to increase overall because of the timing of the demand,” he said. (2/9/01)