Friday, January 20, 2012

Hotels: Occupancy Rate back to pre-recession levels

by Bill McBride on 1/20/2012 03:35:00 PM

From HotelNewsNow.com: STR: US results for week ending 14 January

The U.S. hotel industry experienced increases in all three key performance metrics during the week of 8-14 January 2012, according to data from STR.

In year-over-year comparisons for the week, occupancy was up 4.9 percent to 52.1 percent, average daily rate increased 5.6 percent to US$102.99 and revenue per available room was up 10.8 percent to US$53.65.
This is the weak season for hotel occupancy, but this is a fairly strong improvement over the same period last year. Note: ADR: Average Daily Rate, RevPAR: Revenue per Available Room.

The following graph shows the seasonal pattern for the hotel occupancy rate using a four week average.

Hotel Occupancy Rate Click on graph for larger image.

The red line is for 2012, yellow is for 2011, blue is "normal" and black is for 2009 - the worst year since the Great Depression for hotels).

Hotels have seen a solid start to 2012. The 4-week average of the occupancy rate is back to normal.

Looking forward, February and March are the next key period - that is when business travel usually picks up.

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

Earlier:
Existing Home Sales in December: 4.61 million SAAR, 6.2 months of supply
Existing Home Sales: Inventory and NSA Sales Graph
Existing Home Sales graphs