Friday, February 08, 2013

Hotels: Occupancy Rate near pre-recession levels

by Bill McBride on 2/08/2013 08:00:00 PM

Another update on hotels from HotelNewsNow.com: STR: US results for week ending 2 February

In year-over-year comparisons, occupancy was up 3.6 percent to 53.5 percent, average daily rate rose 6.0 percent to US$106.64 and revenue per available room increased 9.8 percent to US$57.06.
The 4-week average of the occupancy rate is close to normal levels.

Note: ADR: Average Daily Rate, RevPAR: Revenue per Available Room.

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

Hotel Occupancy Rate Click on graph for larger image.

The red line is for 2013, yellow is for 2012, blue is "normal" and black is for 2009 - the worst year since the Great Depression for hotels.

The occupancy rate will continue to increase over the next couple of months as business travel picks up in the Spring. This is a key period for the hotel industry, and the occupancy rate has improved from the same period last year - and is close to pre-recession levels.

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

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