In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Thursday, October 01, 2009

Hotel RevPAR off 16.6 Percent

by Calculated Risk on 10/01/2009 02:44:00 PM

We are now in the Fall business travel season ...

From Norfolk-Virginia Beach posts RevPAR growth in STR weekly numbers

Overall, in year-over-year measurements, the industry’s occupancy fell 7.2 percent to end the week at 59.8 percent. Average daily rate dropped 10.1 percent to finish the week at US$100.30. RevPAR for the week decreased 16.6 percent to finish at US$59.94.
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 10.2% from the same period in 2008.

The average daily rate is down 10.1%, and RevPAR is off 16.6% from the same week last year.

Data Source: Smith Travel Research, Courtesy of

The goods news is the comparisons will become easier soon since business travel fell off a cliff last October. However occupancy rates below 60% are crushing. For comparison, occupancy rates for October in 2006 and 2007 were close to 68%.