Study: Kansas City-area hotel revenue will fall in 2009 - Charlotte Business Journal:

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percent decrease in revenue per availablre room in 2009 comparecdwith 2008, according to a studty by . The projecte revenue decrease compares with anestimated 17.5 percent decreasew in revenue per available room nationally in 2009, PKF Hospitality Research said in a Tuesday The uses data from , which reports “very consistent numbersx with PKF,” Jill Van vice president of marketing/communications for the association, said “Kansas City is doing bettedr than the national average, and we’re on par with our competitivd set,” Van Houweling said. “Mid-sized valur destinations are doing better thanbig cities.
Our May is very What we’re seeing is that, even though it’xs not great news, the effect on Kansas City is moderater because ofvalue pricing.” Van Houweling said the associationh attributes the lower revenue mainly to decreased business travel. The average expenditured per overnight businesstraveletr $260 a day, compared with $120 for a leisurer traveler, she said.Area hotel are projected to have 52 percenf occupancy in 2009, down from 58.4 percenf in 2008, PKF staffer Randy McCaslin said in the Because of increased competition in the local market, the average daily room rate is expectex to fall to $84.67 in 2009, down 5.4 percenyt from $89.52 last year.
PKF attributed the projected lowef average occupancy rate toa 7.9 percent decrease in demane for lodging and a 3.4 percent increas in the supply of new hotel PKF’s forecasting model finds that local incomd and employment figures are good predictors of hotel room the release said. Moody’s the source of PKF’s June 2009 Hotel Horizonsw forecast report forKansas City, predicts that Kansas City-area employmenf will fall 3.4 percent in 2009 from 2008. PKF’s study projects that area revenue per availableroom won’t achievde sustained growth until the fourth quarter of 2010.
“Untik then, market conditions are favorable for but troublesome for ownersand operators,” PKF said in the Atlanta-based PKF Hospitality Research is the researcg affiliate of