Thursday, August 27, 2009

Hotel RevPAR off 16.7 Percent

by Calculated Risk on 8/27/2009 02:13:00 PM

From HotelNewsNow.com: STR reports US performance for week ending 22 August 2009

In year-over-year measurements, the industry’s occupancy fell 7.2 percent to end the week at 60.4 percent. Average daily rate dropped 10.2 percent to finish the week at US$95.70. Revenue per available room for the week decreased 16.7 percent to finish at US$57.84.
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 7.3% from the same period in 2008.

The average daily rate is down 10.2%, and RevPAR is off 16.7% from the same week last year.

Comments: This is a multi-year slump. Although the occupancy rate was off 7.3 percent compared to last year, the occupancy rate is off over 11 percent compared to the same week in 2007.

The end of July through the beginning of August is usually the peak leisure travel period. So the peak occupancy rate for 2009 was probably a month ago at 67%. And that is far below normal.

Earlier this year business travel was off much more than leisure travel. So it was expected that the summer months would not be as weak as earlier in the year. September - after Labor Day (Sept 7th) - will be the real test for business travel, and for the hotel industry.

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