Thursday, October 29, 2009

Hotel RevPAR Off 14 Percent

by Bill McBride on 10/29/2009 11:47:00 AM

From HotelNewsNow.com: New Orleans ADR, RevPAR increase in STR weekly numbers

For the industry, in year-over-year measurements, occupancy fell 6.3 percent to end the week at 59.0 percent, ADR dropped 8.3 percent to US$100.04, and RevPAR decreased 14.1 percent to US$59.03.
Hotel Occupancy Rate Click on graph for larger image in new window.

This graph shows the occupancy rate by week for each of the last four years (2006 through 2009 labeled by start of month).

Notes: the scale doesn't start at zero to better show the change. Thanksgiving was late in 2008, so the dip doesn't line up with the previous years.

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

The above graph shows two key points:
  • This is a two year slump for the hotel industry. Although occupancy is only off 6.3% compared to 2008, occupancy is off almost 13% compared to 2007.

  • There is a distinct seasonal pattern for the occupancy rate. The occupancy rate is higher in the summer (because of leisure travel), and lower on certain holidays.

    RevPAR Variance The HotelNewsNow press release has two graphs on room rates (ADR: Average Daily Rate) and RevPAR variance comprared to 2008.

    This graph shows the RevPAR variance by day, and indicates that business travel (weekdays) is still off more than leisure travel (weekends).

    This has been an ongoing story ...