One sector shadow inflation is taking place is travel. Travelers are facing more restrictions and receiving fewer amenities – without necessarily seeing a price cut. (Photo: Getty Images)
PORTLAND, Ore. (KOIN) – With an occupancy rate of roughly 50%, Portland’s hotel industry is on pace to earn roughly $100 million less in 2023 than it did in 2019, according to a report presented to the Portland City Council by Travel Portland.
During the presentation on June 7, Travel Portland President Jeff Miller told city commissioners that data gathered by the not-for-profit, tourism-marketing organization shows a “lackluster recovery” for Portland’s hotels in 2023. According to the data, roughly 981,600 hotel rooms were booked in Portland between January and April of 2023 — 270,000 fewer bookings than Portland hotels received in 2019 during the same period.
“It’s very tough news for the hotel economy,” Miller said.
Although booking numbers have improved slightly since 2022, revenue remains stagnant compared to years prior to the pandemic. In April of 2019, Portland hotels brought in more than $50.4 million. In April of 2023, those earnings have dropped by more than $10 million.
The lost revenue means less tax money for the city’s general fund, which is generated through lodging taxes. Hotel revenue is also stagnant in Portland’s central city, which is the largest source of lodging tax revenue for the city.
“The hotels in the central city represent 70% of the total hotel revenue,” Miller said. “In April, we were $8.4 million less than the year before.”
Overall, Portland is seeing an occupancy rate of roughly 50% and an average daily room rate of $156.54. Portland’s recovery rate is trailing compared to cities like Seattle, which has a current occupancy rate close to 56% and an average daily room rate of $181.85.
“Seattle isn’t recovering as quickly as they would like either, but certainly better than Portland,” Miller said.
Miller said that Travel Portland will hold a meeting with hotel ownership groups on June 8 to discuss the state of the industry and ways to spur a local recovery.