Modest growth the word of moment in R.I. travel industry

THE RHODE ISLAND HOSPITALITY MARKET is showing some strength, especially compared with other East Coast cities, with the notable exception of Boston, which has seen significant RevPAR (Revenue Per Available Room) growth year to date through June. / COURTESY PINNACLE ADVISORY GROUP
THE RHODE ISLAND HOSPITALITY MARKET is showing some strength, especially compared with other East Coast cities, with the notable exception of Boston, which has seen significant RevPAR (Revenue Per Available Room) growth year to date through June. / COURTESY PINNACLE ADVISORY GROUP

PROVIDENCE – Restaurants and lodging outlets in Rhode Island are expected to continue the slow, steady growth that has characterized those industries since the Great Recession, according to speakers at the Rhode Island Hospitality Association’s Economic Outlook Breakfast on Tuesday at the R.I. Convention Center.
While population growth in Rhode Island is projected to be show a modest two-tenths of 1 percent growth in both 2014 and 2015, disposable income growth is projected to be “incrementally positive” in the period, rising from 1.8 percent growth in 2014 to 2.6 percent growth in 2015, said B. Hudson Riehle, senior vice president of the research and knowledge group at the Washington, D.C.-based National Restaurant Association.
At the same time, employment growth is expected to rise four-tenths of a percentage point, from 1.4 percent this year to 1.8 percent next year, he said.
Riehle based his projections on a comprehensive look at national statistics that show economic pressures still reigning despite sustained increases overall as well as pent-up demand.
“Consumers are still managing their total spend and need that nudging to patronize [restaurants and hotels],” he said, not just in Rhode Island but across the country.
Rachel J. Roginsky, principal of the Pinnacle Advisory Group, a Boston-based hospitality consulting firm, shared detailed data on occupancy, average daily room rates and revenue per available room (RevPAR) for the state, as well as the cities of Providence, Warwick and Newport.
Across the state, Rhode Island’s hotel occupancy rate is in its fifth year of recovery, at 62 percent for 2013, having been preceded by four years of “modest” year-over-year improvements, she said, though it falls short of the 68.2 percent high mark from 2004.
Average daily room rates also showed growth in 2013 at $122.11, while RevPAR came in at $76.21 in 2013, trending up since 2010 as well.
The Boston, Mass., market, which “is doing very well” at 11.3 percent in RevPAR growth year to date through May, continues to outpace Rhode Island, and even Washington, D.C., she said.

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