NEW! CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Thursday, April 08, 2010

Hotel Occupancy declines compared to same week in 2009

by Calculated Risk on 4/08/2010 11:32:00 AM

From HotelNewsNow.com: STR: Luxury leads weekly performance

Overall, the U.S. industry’s occupancy ended the week with a 3.6-percent decrease to 54.1 percent, ADR dropped 4.4 percent to US$94.45, and RevPAR was down 7.9 percent to US$51.05.
The following graph shows the occupancy rate by week for 2009 and 2010, and the median for 2005 through 2007.

Hotel Occupancy Rate Click on graph for larger image in new window.

Notes: the scale doesn't start at zero to better show the change, and the holidays don't always line up.

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.

The decline in occupancy this week breaks a streak of six consecutive weeks with higher year-over-year occupancy rates. Remember that last year (2009) was the lowest occupancy rate since the Great Depression - the average for this week is around 66%, so the current 54.1% is far below normal.

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