Thursday, July 09, 2009

Hotel RevPAR off 13%

by Bill McBride on 7/09/2009 12:45:00 PM

Note: This report included a holiday weekend. Since vacation travel is holding up better than business travel I'd expect year-over-year RevPAR (and occupancy rate) to be off less than earlier this year for the summer months and especially for holiday weekends.

From HotelNewsNow.com: STR reports U.S. hotel performance for week ending 27 June 2009

In year-over-year measurements, the industry’s occupancy fell 6.0 percent to end the week at 57.7 percent. Average daily rate dropped 7.4 percent to finish the week at US$95.16. Revenue per available room for the week decreased 13.0 percent to finish at US$54.94.
Hotel Occupancy Rate Click on graph for larger image in new window.

This graph shows the YoY change in the occupancy rate (3 week trailing average).

The three week average is off 8.8% from the same period in 2008.

The average daily rate is down 7.4%, and RevPAR is off 13.0% from the same week last year.

Note: the occupancy rate will rebound in the next report - this is the normal pattern. The hotel occupancy rate is usually the highest during the peak vacation months of June, July and August and declines on weeks with holiday weekends.

Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com