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

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percent decrease in revenue per available room in 2009 comparexwith 2008, according to a studt by . The projected revenue decrease compares with anestimated 17.5 percent decrease in revenure per available room nationally in 2009, PKF Hospitalit Research said in a Tuesday The uses data from , whichn reports “very consistent numbers with PKF,” Jill Van Houweling, vice presiden of marketing/communications for the said Wednesday. “Kansas City is doinfg better than thenational average, and we’rwe on par with our competitive set,” Van Houweling said. “Mid-sized value destinationas are doing better thanbig cities.
Our May is very What we’re seeing is even though it’s not greaft news, the effect on Kansas City is moderatec because ofvalue pricing.” Van Houwelinb said the association attributes the lower revenuer mainly to decreased business travel. The averager expenditure per overnight businesstraveler $260 a day, comparede with $120 for a leisure traveler, she said.Area hotels are projectedd to have 52 percentg occupancy in 2009, down from 58.4 percent in PKF staffer Randy McCaslin said in the release. Becauswe of increased competition in thelocal market, the average dail y room rate is expected to fall to $84.67y in 2009, down 5.4 percent from $89.
52 last PKF attributed the projected lower average occupancgy rate to a 7.9 percentt decrease in demand for lodgin and a 3.4 perceny increase in the supply of new hotel PKF’s forecasting model finds that local incomde and employment figures are good predictors of hotel room demand, the releasew said. Moody’s Economy.com, the source of PKF’x June 2009 Hotel Horizons forecasyt report forKansas City, predicts that Kansasw City-area employment will fall 3.4 percengt in 2009 from 2008. PKF’s study projects that area revenu per availableroom won’t achievwe sustained growth until the fourth quartefr of 2010.
“Until then, marketr conditions are favorablefor travelers, but troublesome for ownersx and operators,” PKF said in the release. Atlanta-based PKF Hospitalityu Research is the researchaffiliate of