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Thursday, April 30, 2009

Hotel Occupancy Off 8.4 Percent

by Calculated Risk on 4/30/2009 02:05:00 PM

From STR reports U.S. data for week ending 25 April

In year-over-year measurements, the industry’s occupancy fell 8.4 percent to end the week at 59.4 percent. Average daily rate dropped 6.1 percent to finish the week at US$100.44. Revenue per available room [RevPAR] for the week decreased 14.1 percent to finish at US$59.67.
Hotel Occupancy Rate Click on graph for larger image in new window.

This graph shows the YoY change in the occupancy rate (3 week trailing average).

The three week average is off 9.6% from the same period in 2008.

The average daily rate is down 6.1%, so RevPAR is off 14.1% from the same week last year.

The Q1 advance GDP report showed a 44.2% annualized in decline in non-residential structure investment, and I expect lodging investment to decline even more over the next 18 to 24 months. Why build more hotels with RevPAR off 14% YoY?

Data Source: Smith Travel Research, Courtesy of