Sunday, February 26, 2017

Hotels: Hotel Occupancy Softens in February

by Bill McBride on 2/26/2017 11:42:00 AM

After a solid start for 2017 - during the slow season - hotel occupancy has been weak over the last few weeks.

From HotelNewsNow.com: STR: US hotel results for week ending 18 February

The U.S. hotel industry reported mixed results in the three key performance metrics during the week of 12-18 February 2017, according to data from STR.

In a year-over-year comparison with the week of 14-20 February 2016:
Occupancy: -3.2% to 62.2%
• Average daily rate (ADR): +3.1% to US$124.41
• Revenue per available room (RevPAR): -0.2% to US$77.36
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 2017, dashed 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.

For hotels, this is the slow season of the year, and occupancy will pick up into the Spring.

Data Source: STR, Courtesy of HotelNewsNow.com