Thursday, June 24, 2010

Hotel Occupancy Rate increases

by Bill McBride on 6/24/2010 01:12:00 PM

From HotelNewsNow.com: STR: US results for week ending 19 June

In year-over-year measurements, the industry’s occupancy last week increased 5.8 percent to 66.7 percent. Average daily rate rose 1.1 percent to US$98.03—the third time in four weeks that the measurement has risen. Revenue per available room rose 7.0 percent to US$65.36.
The following graph shows the four week moving average for the occupancy rate by week for 2008, 2009 and 2010 (and a median for 2000 through 2007).

Hotel Occupancy Rate Click on graph for larger image in new window.

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

On a 4-week basis, occupancy is up 8.1% compared to last year (the worst year since the Great Depression) and still almost 7% below normal. About half way back!

Last year leisure travel (summer) held up better than business travel, now it appears business travel is recovering - and we will soon see if leisure travel will also pick up this year.

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