Thursday, June 25, 2009

Hotel RevPAR off 20.5 Percent

by Calculated Risk on 6/25/2009 02:07:00 PM

From HotelNewsNow.com: STR posts US results for 14-20 June 2009

In year-over-year measurements, the industry’s occupancy fell 11.5 percent to end the week at 63.0 percent. Average daily rate dropped 10.1 percent to finish the week at US$96.78. Revenue per available room [RevPAR] for the week decreased 20.5 percent to finish at US$61.01.
The report also includes some hightlights on the performance for the top 25 markets. As an example, occupancy is off almost 20% in Dallas and Phoenix, and the Average daily rate (ADR) is off 30% and RevPAR off 35% in New York. Ouch.

No wonder more and more hotels are defaulting ...

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 12.1% from the same period in 2008.

The average daily rate is down 10.1%, so RevPAR is off 20.5% from the same week last year.

Note: some readers might notice the occupancy rate has risen to 63% - but that is just seasonal. The hotel occupancy rate is usually the highest during the peak vacation months of June, July and August.

Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com