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December 13, 2019

CBRE: Hotel lodging demand to slow in Hartford market

Contributed photos Several Hartford hotels.
By Matt Pilon

Hotel occupancy rates in the Hartford market are expected to slow in 2020, following several consecutive years of growth, according to a new forecast.

CBRE Hotels, the hotel research, investment sales and consulting arm of commercial real estate firm CBRE, said it expects the overall occupancy rate to dip from 61.9 percent to 61.5 percent in 2020. That’s the same rate as 2018, and still higher than 2017 and 2016.

The report characterized the Hartford market as “remaining healthy” in the coming year.

CBRE said that at hotels across the country, low unemployment will continue to put upward pressure on salaries and wages.

“In a low revenue growth environment, hotel operators’ ability to expand profits will be tested,” the report said.

Locally, one of the ways CBRE expects hotel operators to deal with falling demand is by increasing average daily rates. The firm estimates those rates will rise from $116.97 in 2019 to $119.09 in 2020, an increase of 1.8 percent -- which is double CBRE’s forecasted increase for daily rates nationwide.
 

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