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Thursday, November 12, 2009

Hotel RevPAR off 11.8 Percent

by Calculated Risk on 11/12/2009 01:20:00 PM

From Boston leads RevPAR gains in STR weekly numbers

Overall, in year-over-year measurements, the industry’s occupancy fell 3.6 percent to 54.8 percent, average daily rate dropped 8.5 percent US$97.19, and RevPAR decreased 11.8 percent to US$53.29.
Hotel Occupancy Rate Click on graph for larger image in new window.

This graph shows the occupancy rate by week for each of the last four years (2006 through 2009 labeled by start of month).

Notes: the scale doesn't start at zero to better show the change. Thanksgiving was late in 2008, so the dip doesn't line up with the previous years.

Data Source: Smith Travel Research, Courtesy of

This is a two year slump for the hotel industry. Although occupancy is off 3.6% compared to 2008, occupancy is off about 17% compared to 2006 and 2007.

The occupancy rate really fell off a cliff in October 2008, and the good news is the occupancy rate for 2009 is tracking closer and closer to 2008.

Smith Travel Research is now predicting a slight uptick in occupancy rates in 2010 to 55.8% from an estimate of 55.2% in 2009. However average daily room rates (ADR), and revenue per available room (RevPAR) are expected to continue to decline slightly in 2010. The "good news" for the hotel industry is supply coming online is dropping sharply, and is expected to stay low for a few years. Of course that is bad news for construction workers ...