Thursday, October 05, 2017

Hotel Occupancy Rate just Behind Record Year

by Bill McBride on 10/05/2017 05:44:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 30 September

The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the week of 24-30 September 2017, according to data from STR.

In comparison with the week of 25 September through 1 October 2016, the industry recorded the following:

Occupancy: +0.4% to 70.3%
• Average daily rate (ADR): +0.8% to US$128.29
• Revenue per available room (RevPAR): +1.2% to US$90.13

Among the Top 25 Markets, Houston, Texas, reported the largest year-over-year increases in occupancy (+42.9% to 86.7%) and RevPAR (+55.6% to US$100.59). Amid recovery from Hurricane Harvey, Houston also posted the second-largest ADR increase (+8.9% to US$116.08).

Orlando, Florida, posted the second-highest lift in occupancy (+18.0% to 83.3%), that coupled with the only double-digit increase in ADR (+17.9% to US$125.34), led the second-largest jump in RevPAR (+39.0% to US$104.36).
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, dash light blue is 2016, dashed orange is 2015 (best year on record), blue is the median, and black is for 2009 (the worst year since the Great Depression for hotels).

Currently the occupancy rate, to date, is ahead of last year, and just behind the record year in 2015.  The hurricanes might push the annual occupancy rate to a new record.

Seasonally, the occupancy rate will increase into the Fall business travel season.

Data Source: STR, Courtesy of HotelNewsNow.com