by Bill McBride on 10/21/2010 02:17:00 PM
Thursday, October 21, 2010
Hotel occupancy is one of several industry specific indicators I follow ...
Important: Even though the occupancy rate is close to 2008 levels, 2010 is a much more difficult year for the hotel industry than 2008. RevPAR (revenue per available room) is up 9.4% compared to 2009, but still down 7.8% compared to 2008 - and 2008 was a very difficult year for the hotel industry.
From HotelNewsNow.com: STR: Economy ADR performance falls short
Overall occupancy increased 8.3% to 63.8%, ADR was up 0.9% to US$100.40, and RevPAR ended the week up 9.4% to US$64.09.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).
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 7.9% compared to last year (the worst year since the Great Depression) and 6.1% below the median for 2000 through 2007.
The occupancy rate is about at the levels of 2008, but RevPAR is still down 7.8%.
Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com