Thursday, February 18, 2010

Hotel RevPAR Off 6.9%

by Calculated Risk on 2/18/2010 01:53:00 PM

From HotelNewsNow.com: DC leads ADR, RevPAR decreases in weekly numbers

Overall, the U.S. hotel industry’s occupancy ended the week with a 2.3-percent decrease to 53.7 percent, ADR dropped 4.7 percent to US$97.12, and RevPAR fell 6.9 percent to US$52.19.
The following graph shows the occupancy rate by week since 2000, and the rolling 52 week average occupancy rate. It is possible the occupancy rate is near the bottom, but at a very low level.

Hotel Occupancy RateClick on graph for larger image in new window.

Note: the scale doesn't start at zero to better show the change.

The graph shows the distinct seasonal pattern for the occupancy rate; higher in the summer because of leisure/vacation travel, and lower on certain holidays.

Based on the normal seasonal pattern, the occupancy rate should have increased sharply last week since business travel usually increases in February. Smith Travel reports that the occupancy rate increased to 53.7% from 48.4% the previous week, but that the increase was less than normal. Occupancy was off 2.3% compared to the same week last year.

Perhaps weather was a factor last week, but business travel appears slightly softer this year than in the same period of 2009.

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