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Historic hotels achieve a substantial premium in ADR and REVPAR over comparable contemporary hotels.

WASHINGTON, DC – January 5, 2017- The outlook for the U.S. lodging industry, particularly historic hotels, continues to be extremely strong, according to CBRE Hotels’ Americas Research (CBRE). 

For the third consecutive year, CBRE Hotels’ Americas Research presented a Historic Hotels of America – CBRE five-year forecast at the Historic Hotels of America annual conference.  CBRE relies on historical hotel performance data from STR, and economic forecasts from CBRE Economic Advisors, to prepare its lodging forecasts.

Key points presented by Mark Woodworth, Senior Managing Director at CBRE, to more than 200 owners, asset managers, general managers, and sales and marketing leaders at the Historic Hotels of America annual conference at The Royal Hawaiian, A Luxury Collection Resort (1927) in early November, 2016 include:

  • Per STR, through the first three quarters of 2016, the aggregate RevPAR for historic hotels  that are members of Historic Hotels of America placed between the national averages for all upper-upscale and all luxury hotels in the U.S. 
     
  • Over the next five years, RevPAR for historic hotels is expected to grow at a compound average annual rate of 2.7 percent, which is greater than the RevPAR forecasts for the nation’s upper upscale hotels at 2.0 percent and 1.7 percent for luxury hotels.  Most of the RevPAR growth is expected to stem from increases in ADR.
     
  • Annual occupancy levels for hotels that are members of Historic Hotels of America remains 8 to 10 percent points above the national average occupancy level through 2020.
     
  • Based on a set of information pulled from CBRE’s database of hotel operating statements, historic hotels (including those that are not members of Historic Hotels of America) had an average ADR of $256.11, higher by more than 11.6 percent than the $229.59 ADR for contemporary hotels. (See chart below) 
     
  • Historic hotel revenue has recovered fully from the 2007 down-turn while comparable contemporary hotels are still lagging in revenue recovery.
     

“The data strongly supports the idea that many consumers favor and will pay more for the unique hotel experience historic properties can offer,” noted Woodworth.

“Historic Hotels of America helps the consumer differentiate the authentic historic hotel from other older hotels,” said Lawrence Horwitz, Executive Director, Historic Hotels of America and Historic Hotels Worldwide. “For the third year in a row, historic hotels inducted into and participating in Historic Hotels of America realize a competitive advantage as well as a substantial premium with their rates, occupancy and RevPAR compared to other hotels.” 

About CBRE Hotels

CBRE Hotels is a specialized advisory group within CBRE providing capital markets, consulting, investment sales, and research and valuation services to companies in the hotel sector. CBRE Hotels is comprised of more than 385 dedicated hospitality professionals located in 60 offices across the globe. 

Contact: R. Mark Woodworth, Senior Managing Director

mark.woodworth@cbre.com / +404 812 5085

About Historic Hotels of America®

Historic Hotels of America is the official program of the National Trust for Historic Preservation for recognizing and celebrating the finest Historic Hotels.  Historic Hotels of America includes more than 295 historic hotels, historic resorts, and small historic inns. These historic hotels have all faithfully maintained their authenticity, sense of place, and architectural integrity in the United States of America, including 44 states, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. Historic Hotels of America is comprised of mostly independently owned and operated properties.  More than 30 of the world’s finest hospitality brands, chains, and collections are represented in Historic Hotels of America. To be nominated and selected for membership into this prestigious program, a hotel must be at least 50 years old; has been designated by the U.S. Secretary of the Interior as a National Historic Landmark or listed in or eligible for listing in the National Register of Historic Places; and recognized as having historic significance. For more information, please visit HistoricHotels.org

Click here to see a video on how to leverage your historic hotel. Click here to see the About Historic Hotels of America video. To view the Historic Hotels of America 2016 Annual Directory ebook or download the free app on iTunes, Amazon, Google play, and the Windows Store.  

Contact: Heather Taylor, Manager, Marketing Communications

htaylor@historichotels.org / +1 202 772 8333

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