Report: Airport Rail Link Increases Hotel Room Revenue

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Cities with direct rail access from the airport to and from downtown receive nearly 11 percent more revenue per room than hotels in cities without such a connection, according to a report from the American Public Transportation Association (APTA) and the U.S. Travel Association.

The study, A New Partnership: Rail Transit and Convention Growth, shows higher revenue per room translates to a potential $313 million in revenue per year for so-called “rail cities.” In the post-recession period, rail cities commanded 16 percent higher revenue per room than hotels in non-rail cities, the organizations said.

“Clearly investment in local rail systems not only benefits residents, but drives significant economic growth in the travel and hospitality industries,” APTA President and CEO Michael Melaniphy said in a news release. “For our nation’s great cities to be more competitive and command higher hotel room rates, we must seize the opportunity to invest in our local rail systems and interconnect these high-demand airports to our American cities world-class amenities.”

Hotel properties located within a quarter mile of a rail station performed even better than those outside of that radius, the study determined. These hotels averaged a 48.6 percent higher daily room rate and a 12.5 percent higher occupancy rate, according to the organizations.

“Rail cities” represented in the report included Atlanta, Chicago, Washington, Minneapolis, Portland and San Francisco.