Sunday, September 02, 2012

Hotel Occupancy Rate above pre-recession levels

by Bill McBride on 9/02/2012 12:03:00 PM

From HotelNewsNow.com: STR: US results for week ending 25 August

In year-over-year comparisons, occupancy ended the week with a 4.9-percent increase to 65.7 percent, average daily rate was up 5.3 percent to US$105.43 and revenue per available room ended the week with an increase of 10.5 percent to US$69.30.
The 4-week average is above the pre-recession levels (the occupancy rate for the same week in 2007 was 64.2 percent).

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.

The occupancy rate will decline over the next month as the summer travel season ends. The next key period is for fall business travel.

The recovery in the occupancy rate has helped hotel profitability, from HotelNewsNow.com: Hotel profitability bouncing back
The U.S. hotel industry achieved a net income of approximately $33 billion, or 21.4% of total revenues, during 2011—a healthy increase of 15.7% over 2010 levels, according to STR through its Hotel Operating Statistics, or HOST, program. STR is the parent company of HotelNewsNow.com.
Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com

Yesterday:
Summary for Week Ending Aug 31st
Schedule for Week of Sept 2nd

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