Thursday, March 10, 2016

Hotel Occupancy in 2016: Tracking Just Behind 2015

by Bill McBride on 3/10/2016 03:07:00 PM

Here is an update on hotel occupancy from STR: US hotel results for week ending 5 March

he U.S. hotel industry reported mixed results in the three key performance metrics during the week of 28 February through 5 March 2016, according to data from STR.

In year-over-year comparisons, the industry’s occupancy decreased 1.0% to 63.7%. Average daily rate for the week was up 3.3% to US$120.62, and revenue per available room increased 2.3% to US$76.89.
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.  The occupancy rate should continue to increase into the Spring, and then increase further during the Summer travel period.

Hotel Occupancy RateThe red line is for 2016, dashed orange is 2015, blue is the median, and black is for 2009 - the worst year since the Great Depression for hotels.

2015 was the best year on record for hotels.

So far 2016 is just behind 2015. Still a solid start to the year.

Data Source: Smith Travel Research, Courtesy of