PROVIDENCE – Rhode Island can expect moderate growth in the restaurant industry and modest lodging industry growth into next year, state and regional experts working with the Rhode Island Hospitality Association predicted Friday.
A wave of new hotels slated to open within the next year in Providence and Newport will dilute an expected increase in lodging demand and contribute to a lower average daily room rate, said Rachel Roginsky, principle of Pinnacle Advisory Group.
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The industry projection comes following the Rhode Island Hospitality Association’s 16th annual Economic Outlook Breakfast in Providence held earlier in September, where roughly 90 hospitality professionals gathered for the event.
2018 hospitality data:
In a post-event report, RIHA said that Middletown showed the highest hotel rate and revenue growth in the state.
Middletown’s average daily rate rose 4.5% since 2018, and its revenue per available room increased by 5.5%.
Roginsky attributed the growth to Middletown’s status as a price point alternative to Newport, and expansion at Naval Station Newport. She also predicted more growth in Middletown’s lodging industry.
Newport’s lodging market experienced upticks as well, with a 0.2% increase in average daily rates and a 0.9% growth in room revenue since last year.
Markets in Providence and Warwick dipped, according to Roginsky.
Room revenue in the Creative Capital decreased 1.1% from 2018, while Warwick registered a 6% drop on the year.
Roginsky attributed the decrease to fewer airline passengers at T.F. Green Airport, minimal economic growth and higher numbers of vacant offices in Warwick.
Rhode Island registered 2018’s second-highest hotel room occupancy rate in New England at 66.3%, although room revenue in the Ocean State fell by 1.2% this year in comparison to 2018, experts said. Massachusetts was the only state in the region with a higher occupancy rate at 70.7%.
Elizabeth Graham is a PBN staff writer. Email her at Graham@PBN.com.
