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Historic hotels achieve a substantial premium in ADR and REVPAR over comparable contemporary hotels.

 

 

 

Washington, DC – October 15, 2015 - The outlook for the U.S. lodging industry, particularly historic hotels, continues to be extremely strong, according to PKF Hospitality Research (PKF-HR is a CBRE company). 

 

For the second consecutive year, PKF Hospitality Research, a CBRE Company (PKF-HR) presented a Historic Hotels of America – PKF-HR five-year forecast at the Historic Hotels of America annual conference.   PKF-HR relies on historical hotel performance data from STR, Inc., and economic forecasts from CBRE Economic Advisors, to prepare its lodging forecasts.

 

Key points presented by Mark Eble, managing director and Midwest practice leader for PKFC-USA | CBRE Hotels to more than 200  Historic Hotels of America annual conference attendees at French Lick Resort on Thursday, October 8 included:

 

Hotels that are marketed as historic hotels achieve a substantial premium in ADR and REVPAR over comparable contemporary hotels.   Per STR, Inc., the aggregate RevPAR for historic hotels  that are members of Historic Hotels of America continues to fall between national averages for all upper-upscale and all luxury hotels in the U.S. 

 

Over the next five years, RevPAR for historic hotels is expected to grow at a compound average annual rate of 4.2 percent, tracking closely with the nation’s upper upscale hotels at 3.9 percent and 4.5 percent for luxury hotels.  Most of the RevPAR growth is expected to stem from increases in ADR.

 

Annual occupancy levels for properties that are members of Historic Hotels of America remains 8 to 10 percentage points above the national average occupancy level through 2019.

 

For the full year 2014, historic hotels (including those that are not members of Historic Hotels of America) had an average ADR of $262.27, 17.7 percent more than the $222.84 ADR for contemporary hotels. (See chart below)

 

Historic hotels have recovered fully from the 2007 down-turn while contemporary hotels are still lagging in recovery.

“The data strongly supports the idea that many consumers favor and will pay more for the unique hotel experience historic properties can offer,” Eble said.

 

Independent research conducted by Bradford Hudson, a marketing professor at Boston College, and presented at the Historic Hotels of America conference reaches similar conclusions.

 

“Academic research conducted across several different industries suggests that brand heritage supports premium pricing,” said Hudson.  “For the hotel industry specifically, preliminary studies indicate that historic hotels can achieve a significant advantage in ADR and REVPAR versus contemporary hotels that are directly comparable in condition and operating characteristics. The key variable seems to be the degree to which the older hotel emphasizes and celebrates its history.”

 

“Historic Hotels of America helps the consumer differentiate the authentic historic hotel from other hotels,” said   Lawrence Horwitz, Executive Director, Historic Hotels of America and Historic Hotels Worldwide “Hotels participating in Historic Hotels of America realize a competitive advantage as well as a substantial premium with their rates, occupancy and RevPAR.” 

About PKF Consulting, USA, a CBRE Company

PKF Consulting, USA (www.pkfc.com​), a CBRE Company, is an advisory and real estate firm specializing in the hospitality industry.  PKF Hospitality Research is the research affiliate of PKFC. The firm has offices in New York, Boston, Indianapolis, Nashville, Chicago, Philadelphia, Washington DC, Atlanta, Jacksonville, Tampa/Orlando, Houston, Dallas, Los Angeles, Bozeman, Seattle, and San Francisco. 

Contact: Mark Eble Managing Director | Midwest Practice Leader

mark.eble@pkfc.com / +1 312 297 7665

About Historic Hotels of America™

Historic Hotels of America is the official program of the National Trust for Historic Preservation for recognizing and celebrating the finest Historic Hotels. Historic Hotels of America was founded in 1989 by the National Trust for Historic Preservation with 32 charter members. Today, Historic Hotels of America has more than 275 historic hotels. These historic hotels have all faithfully maintained their authenticity, sense of place, and architectural integrity in the United States of America, including 44 states, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. Historic Hotels of America is comprised of mostly independently owned and operated properties.  More than 30 of the world’s finest hospitality brands, chains, and collections are represented in Historic Hotels of America. To be nominated and selected for membership into this prestigious program, a hotel must be at least 50 years old; has been designated by the U.S. Secretary of the Interior as a National Historic Landmark or listed in or eligible for listing in the National Register of Historic Places; and recognized as having historic significance. For more information, please visit HistoricHotels.org

Click here to see the About Historic Hotels of America video.   To view the Historic Hotels of America 2015 Annual Directory ebook or download the free app on iTunes, Amazon, Google play, and the Windows Store.   

Contact: Heather Taylor

htaylor@historichotels.org / +1 202 772 8333

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