Pittsburgh area hotels are oversaturated and having trouble with bookings (good hotel, buying)

[corpgypsy]

Originally Posted by bradjl2009

I think it actually might be 60% for the occupancy standard.

One of the past presidents, of a national hospitality/hotelier industry organization, informed me of 70% when I asked him last week-end, at a party.( He also was a former COO of a large hotel holding company).

[lprmesia]

Originally Posted by corpgypsy

One of the past presidents, of a national hospitality/hotelier industry organization, informed me of 70% when I asked him last week-end, at a party.( He also was a former COO of a large hotel holding company).

This even further begs the question. If we were only at 62% occupancy, why did we increase supply by 13% in 2 years?

[corpgypsy]

Originally Posted by lprmesia

This even further begs the question. If we were only at 62% occupancy, why did we increase supply by 13% in 2 years?

Isn't that what I just stated earlier in the thread?

[lprmesia]

Originally Posted by corpgypsy

Isn't that what I just asked you earlier in the thread?

I was echoing what you said after it was further established what standard occupancy rates were. I didn't realize you were asking me directly. I had no clue what standard occupancy rates are, I was only pulling data directly from the article itself. I only commented in the first place not as being some sort of hotel occupancy insider, but in response to people citing the article as their reasoning to flip their lid over the perceived doom and gloom of the Pittsburgh economy while the facts presented in the same article contradict that notion.

[DaisyDaisy]

This is a report released in May 2016, indicating that Pittsburgh area hotels doing well (I don't know how they defined their region vs. the Trib report, which likely covers a larger area).

From the report: "Pittsburgh hotels continue to perform at a high level. Smith Travel Research – the world's foremost source of hotel performance trends – reported that the percentage of available rooms in Allegheny County grew by 4.2 percent in 2015, while hotel occupancy remained even (67.3 percent) despite the increase in supply. "This really speaks to the vibrancy and attractiveness of Pittsburgh," said Davis.

RevPAR (hotel terminology for "revenue per available room") was up 3 percent in Allegheny County over 2014 and average daily rate (ADR) was up 3.4 percent. Among comparable cities such as Indianapolis, Charlotte, Milwaukee and eight other destinations, the Pittsburgh region overall ranked 2nd in both ADR and RevPAR."

[Craziaskowboi]

Originally Posted by DaisyDaisy

This is a report released in May 2016, indicating that Pittsburgh area hotels doing well (I don't know how they defined their region vs. the Trib report, which likely covers a larger area).

From the report: "Pittsburgh hotels continue to perform at a high level. Smith Travel Research – the world's foremost source of hotel performance trends – reported that the percentage of available rooms in Allegheny County grew by 4.2 percent in 2015, while hotel occupancy remained even (67.3 percent) despite the increase in supply. "This really speaks to the vibrancy and attractiveness of Pittsburgh," said Davis.

RevPAR (hotel terminology for "revenue per available room") was up 3 percent in Allegheny County over 2014 and average daily rate (ADR) was up 3.4 percent. Among comparable cities such as Indianapolis, Charlotte, Milwaukee and eight other destinations, the Pittsburgh region overall ranked 2nd in both ADR and RevPAR."

It appears then that the problem is the exurban hotel market collapsing.

[krogerDisco]

Maybe this explains why on my last three visits, I got some very good rates at some very good hotels in Pittsburgh.

[Benzman66]

Just like the old saying goes, "If you build it, they will come!"

[eschaton]

Originally Posted by Craziaskowboi

It appears then that the problem is the exurban hotel market collapsing.

Whether or not that is true, the article makes it sound like obtaining financing for any projects, whether in the urban core or suburbs, has become difficult.

[brother_rebus]

Originally Posted by sealie

The linked article really focuses on the problems Washington County hotels are having after the fracking boom died down. Maybe the Omni, Ace, etc. hotels are having issues, but it's hard to tell from either the article or the data.

Also hard to tll from prices.
Not sure, but perhaps if they dropped rates slightly, people would bmore inclined, vs. AirBnB or just going to a different city all together.