Friday, March 27, 2015

Hotels: On Pace for Best Year on Record

by Bill McBride on 3/27/2015 06:13:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 21 March

The U.S. hotel industry recorded positive results in the three key performance measurements during the week of 15-21 March 2015, according to data from STR, Inc.

In year-over-year measurements, the industry’s occupancy rose 3.2 percent to 69.3 percent. Average daily rate increased 6.6 percent to finish the week at US$122.46. Revenue per available room for the week was up 10.0 percent to finish at US$84.89.
emphasis added
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.

Hotels are now in the Spring travel period and business travel will be solid over the next couple of months.

Hotel Occupancy Rate Click on graph for larger image.

The red line is for 2015, dashed orange is 2014, blue is the median, and black is for 2009 - the worst year since the Great Depression for hotels.  Purple is for 2000.

The 4-week average of the occupancy rate is solidly above the median for 2000-2007, and solidly above 2014.

So far 2015 is at slightly above the level for 2000 (best year for hotels) - and 2015 will probably be the best year on record for hotels.

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