Thursday, February 11, 2010

Hotel RevPAR Off 5.6 Percent

by Bill McBride on 2/11/2010 12:38:00 PM

From HotelNewsNow.com: Super Bowl XLIV boosts Miami weekly performance

Overall, the U.S. industry’s occupancy ended the week virtually flat with a 0.8-percent decrease to 48.4 percent, ADR [average daily rate] dropped 4.8 percent to US$95.34, and RevPAR [revenue per available room] fell 5.6 percent to US$46.14.
The numbers are a comparison to the same week in 2009.

The following graph shows the occupancy rate by week since 2000, and the rolling 52 week average occupancy rate. It is possible the occupancy rate has bottomed, but at a very low level.

Hotel Occupancy RateClick on graph for larger image in new window.

Note: 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.

Starting this week (data released next week), we should expect the occupancy rate to increase sharply as business travel increases. Over the same 12 week period last year, the occupancy rate averaged 56% - well below the normal level of around 63%, but significantly above the current rate.

So next week will be a real test for business travel (although weather will probably be an issue).

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

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