If early indications ring true, it’s going to be a busy summer for hotels across the U.S. as both families and business travelers are expected to hit the road in droves.The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.
Several hoteliers reported to HotelNewsNow.com that advanced bookings are up dramatically year over year, backing up a new forecast by STR that predicts strong performance metrics for June, July and August. STR is the parent company of HotelNewsNow.com.
Not only is demand up, but most hoteliers said pricing power has returned and they are finally able to push rate without experiencing consequential declines in occupancy.
According to STR, average occupancy at U.S. hotels for June, July and August combined is expected to be 70%, up 1% from last year. Average daily rate is expected to be $112.21, up 4.4% from 2012, and revenue per available room is expected to be $78.50, up 5.4% from 2012.
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.
Through the beginning of May, the 4-week average of the occupancy rate has improved from the same period last year and is tracking the pre-recession levels. The occupancy rate will probably move sideways for several more weeks until the summer vacation travel starts.
Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com