Sunday, August 18, 2013

Hotels: Occupancy Rate tracking pre-recession levels

by Bill McBride on 8/18/2013 03:11:00 PM

Another update on hotels from HotelNewsNow.com: STR: US results for week ending 10 August

In year-over-year comparisons, occupancy rose 1.9 percent to 72.7 percent, average daily rate increased 4.8 percent to US$112.48 and revenue per available room grew 6.8 percent to US$81.74.
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.

Through August 10th, the 4-week average of the occupancy rate is slightly higher than the same period last year and is tracking the pre-recession levels.  This is probably the high for the 4-week average of the occupancy rate.  The occupancy rate will decrease over the next several weeks as the summer travel season ends - however, overall, this has been a decent year for the hotel industry.

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

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