Thursday, May 11, 2017

Hotels: Occupancy Rate Increases Year-over-Year

by Bill McBride on 5/11/2017 11:41:00 AM

From HotelNewsNow.com: STR: US hotel results for week ending 6 May

The U.S. hotel industry reported positive results in the three key performance metrics during the week of 30 April to 6 May 2017, according to data from STR.

In comparison with the week of 1-7 May 2016, the industry reported the following:

Occupancy: +3.3% to 67.9%
• Average daily rate (ADR): +2.4% to US$126.67
• Revenue per available room (RevPAR): +5.8% to US$85.96

STR analysts note that performance growth was particularly strong on Friday and Saturday due to a comparison with Mother’s Day weekend a year ago.
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, the occupancy rate will now move mostly sideways until the summer travel season.

Data Source: STR, Courtesy of HotelNewsNow.com