Thursday, April 07, 2016

Hotels: Occupancy Rate Tracking just behind Record Year

by Bill McBride on 4/07/2016 02:30:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 2 April

The U.S. hotel industry recorded positive year-over-year results in the three key performance metrics during the week of 27 March through 2 April 2016, according to data from STR.

In comparison with Easter week 2015, the industry’s occupancy rose 6.6% to 66.9%. Average daily rate for the week was up 5.0% to US$121.96. Revenue per available room increased 11.9% to US$81.61.
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.  The occupancy rate should mostly move sideways for the next couple of months, 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 tracking just behind 2015.

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