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Thursday, October 08, 2009

Hotel Occupancy: Two Year Slump

by Calculated Risk on 10/08/2009 03:47:00 PM

Note: Market graph at bottom.

From NorfolkLuxury occupancy holds steady in STR weekly numbers

Overall, in year-over-year measurements, the industry’s occupancy fell 5.8 percent to end the week at 55.8 percent. Average daily rate dropped 8.3 percent to finish the week at US$95.51. Revenue per available room for the week decreased 13.7 percent to finish at US$53.30.
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 8.3%, and RevPAR is off 13.7% from the same week last year.

Data Source: Smith Travel Research, Courtesy of

As I noted last week, the comparisons are now easier soon since business travel fell off a cliff last October. Comparing to the same week two years ago, occupancy rates are off 16.4%.

Occupancy rates for October in 2006 and 2007 were close to 68%.

Stock Market Crashes Market update:

The second graph is from Doug Short of (financial planner): "Four Bad Bears".

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.