Friday, January 22, 2010

Hotel RevPAR off 16.7% in 2009

by Bill McBride on 1/22/2010 12:18:00 PM

From STR: US hotel industry ends '09 with double-digit RevPAR drop

Revenue per available room fell 16.7 percent to US$53.71 during 2009, according to year-end reports from Smith Travel Research.

The industry’s occupancy fell 8.7 percent to 55.1 percent for the year and average daily rate dropped 8.8 percent to US$97.51.

“Good riddance to 2009, a year which we believe will go down as the worst in the modern hotel industry,” said Mark Lomanno, president at STR.
The occupancy rate in 2009 was the lowest since the Great Depression.

And on the weekly number, from STR reports US performance for week ending 16 January 2010
In year-over-year measurements, the industry’s occupancy ended the week virtually flat with an 0.8-percent decrease to 47.8 percent. Average daily rate dropped 7.4 percent to finish the week at US$94.78. RevPAR for the week fell 8.2 percent to finish at US$45.33.
Hotel Occupancy Rate Click on graph for larger image in new window.

This graph shows the occupancy rate by week since 2000, and the rolling 52 week average occupancy rate.

Notes: the scale doesn't start at zero to better show the change.

The graph shows the distinct seasonal pattern for the occupancy rate; higher in the summer because of leisure/vacation travel, and lower on certain holidays. It appears the occupancy rate might have stopped falling (Smith Travel Research reported the occupancy rate was off 0.8% compared to the same week in 2009), and business travel is the key over the next few months. However the low occupancy rate will continue to put pressure on the average daily room rate.

Data Source: Smith Travel Research, Courtesy of