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Thursday, August 20, 2009

Hotel RevPAR off 16.2 percent

by Calculated Risk on 8/20/2009 02:46:00 PM

From STR reports US performance for week ending 15 August 2009

In year-over-year measurements, the industry’s occupancy fell 6.9 percent to end the week at 63.9 percent. Average daily rate dropped 9.9 percent to finish the week at US$96.70. Revenue per available room for the week decreased 16.2 percent to finish at US$61.80.
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 7.0% from the same period in 2008.

The average daily rate is down 9.9%, and RevPAR is off 16.2% from the same week last year.

Note: This is a multi-year slump. Although the occupancy rate was off 6.9 percent compared to last year, the occupancy rate is off about 11 percent compared to the same week in 2007.

As previously mentioned, the end of July and beginning of August is the peak leisure travel period. The peak occupancy rate for 2009 was probably four weeks ago at 67%. Also, business travel was off much more than leisure travel earlier this year, so the summer months are not as weak as other times of the year. September will be the real test for business travel.