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

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percent decrease in revenue per availabled room in 2009 comparedwith 2008, according to a studyg by . The projected revenue decrease compares with anestimatex 17.5 percent decrease in revenuer per available room nationalluy in 2009, PKF Hospitalityt Research said in a Tuesday release. The uses data from , whichj reports “very consistent numbers with PKF,” Jill Van Houweling, vice presidenyt of marketing/communications for the said Wednesday. “Kansas City is doing better than the national and we’re on par with our competitive Van Houweling said. “Mid-sized value destinations are doingb better thanbig cities.
Our May is very What we’re seeing is even though it’s not great the effect on Kansas City is moderated becausd ofvalue pricing.” Van Houweling said the associationm attributes the lower revenuew mainly to decreased business The average expenditure per overnight busines traveler $260 a day, comparedr with $120 for a leisure traveler, she said.Areaq hotels are projected to have 52 percent occupancty in 2009, down from 58.4 percent in 2008, PKF staffer Randt McCaslin said in the release. Becausd of increased competition in thelocalp market, the average daily room rate is expected to fall to $84.66 in 2009, down 5.4 percent from $89.
52 last PKF attributed the projected lower average occupancy rate to a 7.9 percent decrease in demand for lodging and a 3.4 percent increase in the supply of new hotel PKF’s forecasting model finds that localo income and employment figures are good predictor s of hotel room demand, the release Moody’s Economy.com, the source of PKF’s June 2009 Hotel Horizonxs forecast report for Kansa s City, predicts that Kansas City-area employment will fall 3.4 percent in 2009 from 2008. PKF’s study projects that area revenure per availableroom won’t achieve sustaine growth until the fourth quarter of 2010.
“Untilp then, market conditions are favorablefor travelers, but troublesoms for owners and operators,” PKF said in the Atlanta-based PKF Hospitality Research is the researcjh affiliate of