Thursday, July 22, 2010

Hotel Occupancy Rate above 70% last week

by Bill McBride on 7/22/2010 01:35:00 PM

Hotel occupancy is one of several industry specific indicators I follow ...

From HotelNewsNow.com: STR: US hotel results for week ending 17 July

In year-over-year measurements, the industry’s occupancy increased 7.3 percent to 71.0 percent. Average daily rate rose 1.6 percent to US$99.07 Revenue per available room went up 9.0 percent to US$70.30.
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. The graph shows the 4-week average, not the weekly occupancy rate.

On a 4-week basis, occupancy is up 6.8% compared to last year (the worst year since the Great Depression) and 4.7% below the median for 2000 through 2007.

On a weekly basis this is the first week since summer 2008 with the occupancy rate above 70%. In 2009, the occupancy rate peaked at 67% in mid-July.

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