HISTORIC HOTELS CONTINUE to be strong performers as more travelers search for unique experiences on their journeys, according to CBRE Hotels Americas Research. The positive predictions in CBRE’s Historic Hotels of America – CBRE five-year forecast presented at the Historic Hotels of America annual conference.
CBRE’s forecast points to U.S. historic hotels’ consistent outperformance of contemporary hotels in similar markets. For example, CBRE Senior Managing Director Mark Woodworth in his presentation at the conference cited STR statistics that showed the aggregate RevPAR for the first three quarters of 2018 for historic hotels that are members of Historic Hotels of America was between national averages of $140.48 for upper upscale and $250.76 for luxury hotels.
Woodworth also said that RevPAR for historic hotels is expected to grow at an average annual rate of 1.45 percent over the next two years, higher than the 0.5 percent growth forecast for upper upscale but less than the 3.95 percent forecast for luxury hotels. Annual occupancy for Historic Hotels of America members remains approximately 8.3 percent points above the national average occupancy level through 2020.
Also, CBRE’s database of hotel operating statements shows historic hotels, including those that are not HHA members, had an average ADR of $277.87, higher by more than 16.36 percent than the $238.78 ADR for contemporary hotels. This trend of historic hotels outperforming contemporary hotels has been ongoing since 2009, Woodworth said.
“The data strongly supports the idea that many consumers favor and will pay more for the unique hotel experience historic properties can offer,” he said.
HHA Executive Director Lawrence Horwitz seconded CBRE’s findings, adding that the association’s promotion improves that performance.
“Historic hotels can achieve a significant advantage in ADR and REVPAR versus contemporary hotels, especially when recognized as part of Historic Hotels of America,” he said. “For the fifth 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.”