Thursday, June 23, 2016

Hotels: Occupancy Rate Tracking just behind Record Year

by Bill McBride on 6/23/2016 05:11:00 PM

On occupancy from HotelNewsNow.com: STR: US hotel results for week ending 18 June

The U.S. hotel industry reported mostly positive results in the three key performance metrics during the week of 12-18 June 2016, according to data from STR.

In year-over-year comparisons, the industry’s occupancy was nearly flat (-0.1% to 74.6%). However, average daily rate increased 3.5% to US$126.89, and revenue per available room grew 3.3% to US$94.62.
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The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

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, and well ahead of the median rate.

The occupancy rate should remain above 70% during the Summer travel period.

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