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Thursday, November 05, 2009

Hotel RevPAR Off 13.8 Percent

by Calculated Risk on 11/05/2009 12:44:00 PM

From Anaheim-Santa Ana leads occupancy increases in STR weekly numbers

Overall, in year-over-year measurements, the industry’s occupancy fell 7.2 percent to end the week at 51.8 percent, average daily rate dropped 7.2 percent to US$98.99, and revenue per available decreased 13.8 percent to US$51.28.
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

The above graph shows two key points:
  • This is a two year slump for the hotel industry. Although occupancy is off 7.2% compared to 2008, occupancy is off about 14% compared to 2006 and 2007.

  • There is a distinct seasonal pattern for the occupancy rate. The occupancy rate is higher in the summer (because of leisure travel), and lower on certain holidays.

    Occupancy Variance The HotelNewsNow press release also has this graph on occupancy variance compared to 2008.

    For most of the year business travel (mid-week) has been off more than leisure travel (weekends).

    Perhaps there has been an increase in mid-week travel, and this is something to watch.