Sunday, May 24, 2015

Hotels: RevPAR up almost 50% since 2009

by Bill McBride on 5/24/2015 10:01:00 PM

Revenue per available room (RevPAR) is now at $85.50. In May 2009, RevPAR had fallen to $58.39. So, RevPAR is up 46.9% over the last 6 years - and the occupancy rate will probably be at a new record high this year.  A great year for hotels!

From HotelNewsNow.com: STR: US hotel results for week ending 16 May

The U.S. hotel industry recorded positive results in the three key performance measurements during the week of 10-16 May 2015, according to data from STR, Inc.

In year-over-year measurements, the industry’s occupancy increased 0.5 percent to 70.3 percent. Average daily rate increased 5.2 percent to finish the week at US$122.10. Revenue per available room for the week was up 5.7 percent to finish at US$85.80.
emphasis added
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 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 last year.

Right now 2015 is even above 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