Thursday, August 05, 2010

Hotel Occupancy Rate at 71% last week

by Bill McBride on 8/05/2010 01:33:00 PM

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

From STR: US results for 31 July 2010

In year-over-year measurements, the industry’s occupancy increased 6.8 percent to 71.0 percent. Average daily rate rose 1.5 percent to US$99.27. Revenue per available room increased 8.5 percent to US$70.45.
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 6.3% compared to last year (the worst year since the Great Depression) and 5.7% below the median for 2000 through 2007.

Just over half way back to normal, and almost back to the levels of 2008 (the occupancy rate started to fall off in the 2nd half of 2008).

Data Source: Smith Travel Research, Courtesy of