Friday, December 24, 2010

Hotels: RevPAR up 14% compared to same week in 2009

by Bill McBride on 12/24/2010 02:51:00 PM

A weekly update on hotels from HotelNewsNow.com: STR: US performance for week ending 18 Dec.

In year-over-year measurements, the industry’s occupancy rose 9.4 percent to 46.5 percent, average daily rate increased 4.1 percent to US$91.66, and revenue per available room went up 14.0 percent to US$42.61.
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 7.3% compared to last year and 3.3% below the median for 2000 through 2007. RevPAR (revenue per available room) was up 7.7% compared to the same week two years ago (in 2008).

This is the slow season for hotels, and the key will be if business travel picks up early next year.

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