Boston Hospitality Market Report

Luxury hotels hold firm as shelter phase-out weighs on limited service. Boston’s hospitality landscape began 2025 on solid footing with the fourth-highest metrowide occupancy of major U.S. markets, joining just three others that have eclipsed their 2019 levels. While the state’s use of hotels as migrant shelters in suburbs like Braintree and Woburn helped local occupancy rise by over 200 basis points last year, the mayor’s plan to phase out these shelters in 2025 could slow this growth. Tepid leisure spending among financially strained lower-income households will likely persist, further weighing on the economy segment. At the same time, full-service hotels in the urban core are set to see continued occupancy gains, fueled by steady demand from group bookings and international tourism. Major 2025 events will bring a significant influx of visitors, including the recent Ice Hockey World Champoinships and the World Figure Skating Championships. An active conference schedule is also expected to support corporate travel, as the Boston Convention Center looks to surpass its recent record of more than 400,000 hotel room nights annually.