The Third Quarter showed continued performance that exceeded the market for similar properties. In fact, several properties saw improved performance over last year, and our overall PBC holdings as of this week are now showing REVPAR equal to last year, despite the market drop! Our Premium Beach Condos’ average REVPAR was $151 at this time last year, and this year now matches at $151; the Panama City Beach market was at $113 this time last year, but has now dropped to $97, a decline of a little over 14%. That’s outstanding for this market, so KUDOS to our revenue management team.
Our focus for the last half of this year has been to decrease prices a little, and to push for higher occupancy. In some instances we were overly optimistic and waited a little too long trying to capture the best prices, but overall we were successful to book at pace with RevPar. Sometimes discounting too much attracts a different target market and loses the market you want. But overall our average ADR stayed above the market drops, and our occupancy remained higher than market. Our hope is that we did not discount enough to change expectations for next year’s guests.
We did find that some properties performed better than others. In this down market, the unique advantages that a property offers will play a stronger role in driving bookings. We believe that our new Xplorie program helped to keep us at the top of guest choices because of the increased value to their bookings. Anything else you can offer with your property (other than discounts) to make your property stand out will help you weather the down market. We will continue to work on balance with rates and occupancy to keep RevPar ahead of the market. If you would like to talk about updates to your property during the off season, or any special incentives or value added ideas, feel free to call us to discuss your thoughts and timing.
On your individual owner statement pages, you’ll find the REVPAR report for your specific property(s). If you have any questions, please don’t hesitate to reach out to Jenny at (937) 790-2292.
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