Boston Hospitality Market Report
2023 Investment Forecast
New Venues Set Stage for Business Travel Recovery;
Lower Entry Costs Lead Buyers to Upscale Options
New infrastructure and eased health regulations foster continued occupancy gains. Nominal revenues marked a full recovery from the health crisis last year, supported by a surge in domestic leisure tourism. Monthly visitations exceeded 120 percent of the equivalent 2019 level in September 2022, and are expected to remain elevated. Though the timeline for business travel recovery will extend into at least 2024, infrastructure developments will facilitate a solid foundation for future growth in this segment. A $225 million renovation to Gillette Stadium will add 75,000 square feet of year-round convention space before the inauguration of the 2023 NFL season, potentially attracting more bookings in Foxborough and adjacent zones. Additionally, the Boston Convention and Exhibition Center will relax the last of its COVID-19 restrictions on major events this year, easing the burden of holding these expositions. This should bolster hotel occupancy in South Boston and the Seaport zone, particularly from business-related travel. By the end of 2023, hotel demand across Greater Boston will exceed 16 million room nights, the highest level in metro history.