Saturday, October 05, 2013

Hotels: Occupancy Rate tracking pre-recession levels

by Bill McBride on 10/05/2013 07:52:00 PM

Note: We will probably see some impact on travel over the next week or two from the government shutdown. The data below is before the shutdown.

From HotelNewsNow.com: STR: US results for week ending 28 September

In year-over-year comparisons, occupancy rose 5.8% to 67.8%; ADR was up 8.3% to $115.47; and RevPAR increased 14.5% to $78.31.
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 September 28th, the 4-week average of the occupancy rate is slightly higher than the same period last year and is tracking just above the pre-recession levels.  The 4-week average of the occupancy rate would usually increase seasonally over the next several weeks, before declining during the holidays. 

Overall - before the shutdown - this has been a decent year for the hotel industry.

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

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