Thursday, July 02, 2009

Hotel RevPAR off 17.4%

by Calculated Risk on 7/02/2009 12:20:00 PM

From HotelNewsNow.com: STR reports U.S. hotel performance for week ending 27 June 2009

In year-over-year measurements, the industry’s occupancy fell 8.7 percent to end the week at 65.4 percent. Average daily rate dropped 9.5 percent to finish the week at US$97.49. Revenue per available room for the week decreased 17.4 percent to finish at US$63.74.
No wonder some expect as many as 20% of U.S. hotels to default on their loans ...

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 10.3% from the same period in 2008.

The average daily rate is down 9.5%, so RevPAR is off 17.4% from the same week last year.

Note: the occupancy rate has risen to 65% - this is just seasonal. The hotel occupancy rate is usually the highest during the peak vacation months of June, July and August (with declines on weeks with holiday weekends).

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