Thursday, December 31, 2015

Hotel Occupancy: 2015 is Best Year on Record

by Bill McBride on 12/31/2015 05:31:00 PM

Here is an update on hotel occupancy from STR: US results for week ending 26 December

The U.S. hotel industry reported negative results in the three key performance measurements during the week of 20-26 December 2015, according to data from STR, Inc.

In year-over-year measurements, the industry’s occupancy decreased 4.0% to 42.8%. Average daily rate for the week was down 1.7% to US$108.34. Revenue per available room fell 5.6% to US$46.37.
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.  Hotels are currently in the weakest part of the year; December and January.

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.

2015 is the best year on record for hotels.

Average Weekly Occupancy Rate by Year:
1) 2015 65.9%
2) 2000 64.8%
3) 2014 64.8%

And the worst:
2009 55.0%

Data Source: Smith Travel Research, Courtesy of