Friday, July 10, 2015

Hotels: On Pace for Record Occupancy in 2015

by Bill McBride on 7/10/2015 06:15:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 4 July

The U.S. hotel industry recorded positive results in the three key performance measurements during the week of 28 June through 4 July 2015, according to data from STR, Inc.

In year-over-year measurements, the industry’s occupancy increased 3.6 percent to 68.3 percent. Average daily rate for the week was up 6.2 percent to US$119.20. Revenue per available room increased 10.1 percent to finish the week at US$81.45.
emphasis added
For the same week in 2009, ADR (average daily rate) was $95.16 and RevPAR (Revenue per available room) was $54.94. ADR is up 25% since June 2009, and RevPAR is up almost 50%!

The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.  The occupancy rate will be high during the summer travel season.

Hotel Occupancy RateThe 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 above last year.

Right now 2015 is above 2000 (best year for hotels), and this year will probably be the best year ever for hotels.

The summer season will probably be strong with lower gasoline prices.

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