Northeast Hospitality Investment Forecast
Scenic Destinations Boosting Outlook Amid Shift in Leisure Travel Behavior
Region's smaller venues outpacing pre-pandemic performance. Occupancy and revenue across the Northeast is gaining momentum after a difficult 2020 and slow start to 2021. Several areas are now outperforming pre-pandemic levels. Maine has been recording occupancy, ADR and revenues well above the year-end 2019 values, driven by the state's outdoor activities and scenic views. Entering this year, the midcoast stretch of Maine observed occupancy levels more than 800 basis points above its pre-pandemic high, with revenue growth of more than 24 percent over the same time span. Shifting traveler preferences in favor of less dense, more scenic locales have also aided hoteliers in Vermont, where ADR and RevPAR are well above their 2019 values as 2022 began. Massachusetts tourism hubs like Cape Cod and Boston have struggled to recover losses, but gains in Southeast Massachusetts cities like Plymouth and New Bedford have helped the statewide figures. Looking forward, larger destinations are set to benefit from rising business and international travel.