Monday, October 17, 2016

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

by Bill McBride on 10/17/2016 01:27:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 8 October

The U.S. hotel industry reported mixed results in the three key performance metrics during the week of 2-8 October 2016, according to data from STR.

In year-over-year comparisons, the industry’s occupancy decreased 1.0% to 70.9%. However, average daily rate (ADR) was up 1.8% to US$127.88, and revenue per available room (RevPAR) increased 0.8% to US$90.67. STR analysts note that overall performance for the week was affected by the Rosh Hashanah calendar shift from 14 September 2015 to 3 October 2016. Performance in the Group segment was down in most major markets.
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:
1) 2015: 67.6% average occupancy.
2) 2016: 67.4% average.
3) 2000: 67.0% 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