Friday, April 19, 2013

Hotels: Occupancy Rate tracking pre-recession levels

by Calculated Risk on 4/19/2013 09:46:00 AM

Another update on hotels from HotelNewsNow.com: STR: US results for week ending 13 April

In year-over-year comparisons, occupancy was up 3.2 percent to 64.1 percent, average daily rate rose 7.2 percent to US$110.88 and revenue per available room increased 10.7 percent to US$71.04.
The 4-week average of the occupancy rate is close to normal levels.

Note: ADR: Average Daily Rate, RevPAR: Revenue per Available Room.

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

Hotel Occupancy Rate Click on graph for larger image.

The red line is for 2013, yellow is for 2012, blue is "normal" and black is for 2009 - the worst year since the Great Depression for hotels.

The occupancy rate will probably move sideways until the summer vacation travel starts.  The occupancy rate has improved from the same period last year - and is tracking the pre-recession levels.

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