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Thursday, April 16, 2009

Hotel Occupancy: RevPAR Off 28.1 Percent

by Calculated Risk on 4/16/2009 01:05:00 PM

More bad news for CRE today. General Growth (2nd largest mall owner) filed bankruptcy this morning. And Cushman & Wakefield reported the downtown office vacancy rate increased sharply in Q1.

And for lodging, occupancy and RevPAR (Revenue per available room), are off sharply year-over-year.

From STR reports U.S. data for week ending 11 April 2009

In year-over-year measurements, the industry’s occupancy fell 17.9 percent to end the week at 52.6 percent (64.1 percent in the comparable week in 2008). Average daily rate dropped 12.5 percent to finish the week at US$96.60 (US$110.36 in the comparable week in 2008). Revenue per available room for the week decreased 28.1 percent to finish at US$50.85 (US$70.76 in the comparable week in 2008).
emphasis added
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 13.7% from the same period in 2008.

The average daily rate is down 12.5%, so RevPAR is off 28.1% from the same week last year.

Data Source: Smith Travel Research, Courtesy of