Rhode Island Lodging Market Outlook – presented by Kate Mashburn
On September 4, 2024, Kate Mashburn presented at the Rhode Island Hospitality Association’s Economic Outlook Breakfast. The lodging presentation included a discussion and analysis of the national lodging market, the Rhode Island lodging market, and data on four submarkets in the state: Providence, Warwick, Newport, and Middletown.
Kate revealed that, on a national level, luxury and upscale hotels and accommodations have experienced continued growth while budget and middle-cost travel is decreasing as consumers are becoming more price-conscious compared to just after the pandemic. Additionally, a survey the National Restaurant Association conducted among restaurant operators indicated increasing concerns about the economy as well as increasingly pessimistic outlooks on general business conditions.
Statewide, the hotel industry is steady, with year-to-date occupancy rates hitting just one percentage point under the national average of 63% for July 2024, with Warwick’s occupancy rate projected to reach up to 69% by the end of 2024. Mashburn attributes this partially to increased activity coming out of T.F. Green Airport.
Meanwhile, on Aquidneck Island, occupancy rates have decreased since 2023 owing to increases in supply, namely the opening of the Gardiner House in September 2023, the Wayfinder hotel’s phased reopening and Newport Harbor Island Resort’s reopening in April 2024.
Kate provided information on the health of the economy, the Rhode Island Convention Center, TF Green Airport, the local office markets, and other factors that influence lodging in the state. For each submarket, Pinnacle prepared projections for 2024 and 2025.
Click on the link below to view or download the presentation: