Thursday, September 17, 2009

Hotel RevPAR off 25.5%

by Calculated Risk on 9/17/2009 01:38:00 PM

This is a crushing comparison, but the numbers might be distorted by the late Labor Day this year (Sept 7th). That made the comparison easier last week (with more leisure travel), but perhaps business travel hasn't started yet (important for hotels after Labor Day). Next week will be key ...

From HotelNewsNow.com: New Orleans leads declines in STR weekly results

In year-over-year measurements, the U.S. industry’s occupancy fell 14.6 percent [for the week ending 12 September] at 52.8 percent. ADR dropped 12.8 percent to finish the week at US$94.49. RevPAR for the week decreased 25.5 percent to finish at US$49.92.
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 9.6% from the same period in 2008.

The average daily rate is down 12.8%, and RevPAR is off 25.5% from the same week last year.

Note that this is a multi-year slump. Although occupancy was off 14.6% compared to the same week in 2008, occupancy is off about 23% from the same week in 2006.

Also, earlier this year business travel was off much more than leisure travel. So it was no suprise that occupancy rates didn't decline as far during the Summer as earlier in the year. However, after Labor Day, business travel becomes far more important for the hotel industry than leisure, and next week will be very important to see if business travel is recovering.

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