Thursday, October 27, 2011

Hotels: Occupancy Rate increases 4% year-over-year

by Calculated Risk on 10/27/2011 01:14:00 PM

From HotelNewsNow.com: Miami reports strongest weekly RevPAR gain

Overall, the U.S. hotel industry’s occupancy rose 4% to 66.2%, average daily rate increased 4.4% to US$105.49, and RevPAR finished the week up 8.6% to US$69.88.
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.

We are now in the fall business travel season. The 4-week average of the occupancy rate has increased again seasonally. In September, the 4-week average was back to the pre-recession median, but October fall business travel was less than normal - but still better than last year.

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. After briefly recovering to the median, this measure has declined over the last month.

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