Monday, November 28, 2016

Hotels: Finishing Year Strong, Could be Best Year on Record

by Bill McBride on 11/28/2016 01:34:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 19 November

The U.S. hotel industry reported positive results in the three key performance metrics during the week of 13-19 November 2016, according to data from STR.

In year-over-year comparisons, the industry’s occupancy rose 4.5% to 65.8%. Average daily rate (ADR) increased 4.6% to US$122.02. Revenue per available room (RevPAR) grew 9.2% to US$80.25.
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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.    With a solid finish, 2016 could be the best year on record.

Year-to-date, the three best years are:
1) 2015: 67.4% average occupancy.
2) 2016: 67.4% average.
3) 2000: 66.5% average.

For hotels, the Fall business travel season is slowing down, and the occupancy rate will decline into the holiday season.

Data Source: STR, Courtesy of HotelNewsNow.com