Friday, September 30, 2011

Hotels: Occupancy Rate increased 4.1 percent compared to same week in 2010

by Calculated Risk on 9/30/2011 01:49:00 PM

Note: This is one of the industry specific measures that I follow. I only post this every few weeks or so.

From HotelNewsNow.com: STR: US hotel results week ending 24 September

In year-over-year comparisons for the week, occupancy rose 4.1 percent to 66.8 percent, average daily rate increased 4.0 percent to US$107.24, and revenue per available room finished the week up 8.3 percent to US$71.65.
Note: ADR: Average Daily Rate, RevPAR: Revenue per Available Room.

The following graph shows the seasonal pattern for the hotel occupancy rate using a four week average for the occupancy rate.

Hotel Occupancy Rate Click on graph for larger image in graph gallery.

We are now headed into the fall business travel season. The 4-week average of the occupancy rate will increase again seasonally. For the month of September, the 4 week average of the hotel occupancy rate has been back to the pre-recession median level.

Even though the occupancy rate has recovered, ADR and RevPAR are still about 3% lower than before the recession for the comparable week.

Hotel Occupancy RateThe second graph shows the 4-week average of the occupancy rate as a percent of the median since 2000. Note: Since this is a percent of the median, the number can be above 100%.

This shows the decline in the occupancy rate during and following the 2001 recession. The sharp decline in 2001 was related to 9/11, and the sharp increase towards the end of 2005 was due to Hurricane Katrina.

The occupancy rate really fell off a cliff in 2008, and has slowly recovered back to the median.

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