Sunday, October 09, 2016

Hotels: Occupancy Rate on Track to be 2nd Best Year

by Bill McBride on 10/09/2016 11:18:00 AM

From HotelNewsNow.com: STR: US hotel results for week ending 1 October

The U.S. hotel industry recorded positive results in the three key performance metrics during the week of 25 September through 1 October 2016, according to data from STR.

In year-over-year comparisons, the industry’s occupancy increased 1.8% to 70.0%. Average daily rate (ADR) was up 1.3% to US$126.95. Revenue per available room (RevPAR) grew 3.2% to US$88.83.
emphasis added
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.

Year-to-date, the three best years are:
2015: 67.5% average occupancy.
2016: 67.3% average.
2000: 66.9% average.

For hotels, this is now the Fall business travel season that will continue for another month or so - and then the occupancy rate will decline into the holiday season.

Data Source: STR, Courtesy of HotelNewsNow.com