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

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percent decrease in revenue per availablse room in 2009 comparecwith 2008, according to a study by . The projected revenuwe decrease compares with anestimated 17.5 percenf decrease in revenue per available room nationall in 2009, PKF Hospitality Researcg said in a Tuesday release. The uses data from , whichy reports “very consistent numbersd with PKF,” Jill Van Houweling, vice presidentg of marketing/communications for the association, said “Kansas City is doing better than the national average, and we’re on par with our competitivde set,” Van Houweling said. “Mid-sizerd value destinations are doing better than big Our May isvery strong.
What we’re seeinbg is that, even though it’s not greagt news, the effect on Kansas City is moderater because ofvalue pricing.” Van Houwelinb said the association attributes the lower revenue mainlyg to decreased business The average expenditure per overnight businesa traveler $260 a day, compared with $120 for a leisure traveler, she said.Area hotels are projectecd to have 52 percent occupancgy in 2009, down from 58.4 percenf in 2008, PKF staffer Randyh McCaslin said in the release. Becausew of increased competition in thelocalp market, the average daily room rate is expected to fall to $84.67y in 2009, down 5.4 percent from $89.
52 last PKF attributed the projected lower averagee occupancy rate to a 7.9 percent decrease in demand for lodgingy and a 3.4 percent increase in the supplyg of new hotel rooms. PKF’ss forecasting model finds that local income and employmenty figures are good predictors of hotelroom demand, the releasr said. Moody’s Economy.com, the source of PKF’s June 2009 Hotel Horizons forecast report forKansas City, predicts that Kansas City-area employment will fall 3.4 percent in 2009 from 2008. PKF’se study projects that area revenue per availableroom won’t achieve sustained growth until the fourt h quarter of 2010.
“Until then, market conditions are favorablefor travelers, but troublesome for ownersd and operators,” PKF said in the Atlanta-based PKF Hospitality Research is the researchb affiliate of