Monday, May 28, 2018

Hotels: Occupancy Rate decreases Year-over-Year, Close to Record Annual Pace

by Bill McBride on 5/28/2018 10:44:00 AM

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

The U.S. hotel industry reported mixed year-over-year results in the three key performance metrics during the week of 13-19 May 2018, according to data from STR.

In comparison with the week of 14-20 May 2017, the industry recorded the following:

Occupancy: -0.5% to 70.2%
• Average daily rate (ADR): +3.5% to US$132.36
• Revenue per available room (RevPAR): +3.0% to US$92.92
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Hotel Occupancy RateClick on graph for larger image.

The red line is for 2018, dash light blue is 2017 (record year due to hurricanes), blue is the median, and black is for 2009 (the worst year probably since the Great Depression for hotels).

The occupancy rate, to date, is slightly ahead of the record year in 2017 (2017 finished strong due to the impact of the hurricanes).

On a seasonal basis, the occupancy rate will pick up soon when the summer travel season starts.

Data Source: STR, Courtesy of HotelNewsNow.com