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

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percent decrease in revenue per availablee room in 2009 compareewith 2008, according to a study by . The projectedx revenue decrease compares with anestimate 17.5 percent decrease in revenue per available room nationalluy in 2009, PKF Hospitality Research said in a Tuesday release. The uses data from , whicjh reports “very consistent numbers with JillVan Houweling, vice presidenyt of marketing/communications for the association, said Wednesday. “Kansa s City is doing better than thenationa average, and we’re on par with our competitive set,” Van Houwelinv said. “Mid-sized value destinations are doing betteer thanbig cities.
Our May is very What we’re seeing is that, even though it’sz not great news, the effect on Kansasz City is moderated because ofvalue pricing.” Van Houwelinv said the association attributes the lowed revenue mainly to decreased business The average expenditure per overnighy business traveler $260 a day, compared with $120 for a leisur e traveler, she said.Area hotels are projected to have 52 percen t occupancy in 2009, down from 58.4 percen in 2008, PKF staffer Randyu McCaslin said in the release. Because of increasedf competition in thelocal market, the average daily room rate is expectedx to fall to $84.67 in 2009, down 5.4 percentf from $89.52 last year.
PKF attributedx the projected lower average occupancy rate toa 7.9 percentt decrease in demand for lodgingt and a 3.4 percent increase in the supplg of new hotel rooms. PKF’sw forecasting model finds that local income and employment figureds are good predictors of hotekroom demand, the release said. Moody’w Economy.com, the source of PKF’s June 2009 Hotel Horizons forecast reporft forKansas City, predicts that Kansaa City-area employment will fall 3.4 percent in 2009 from 2008. PKF’ws study projects that area revenuse per availableroom won’t achieve sustained growtj until the fourth quarter of 2010.
“Until market conditions are favorablefor travelers, but troublesomse for owners and operators,” PKF said in the Atlanta-based PKF Hospitality Research is the researcnh affiliate of