Friday, March 14, 2014

Hotel Occupancy Rate increased 2.1% year-over-year in latest Survey

by Calculated Risk on 3/14/2014 11:05:00 AM

From HotelNewsNow.com: STR: US results for week ending 8 March

The U.S. hotel industry posted positive results in the three key performance measurements during the week of 2-8 March 2014, according to data from STR.

In year-over-year measurements, the industry’s occupancy increased 2.1 percent to 64.0 percent. Average daily rate rose 4.8 percent to finish the week at US$114.85. Revenue per available room for the week was up 7.1 percent to finish at US$73.52.
emphasis added
Note: ADR: Average Daily Rate, RevPAR: Revenue per Available Room.

During the same week in 2008, RevPAR was around $65. and ADR was at $108. In 2009, RevPAR and ADR declined sharply, but these metrics are now at new highs.

The 4-week average of the occupancy rate is close to normal levels.

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 2014 and black is for 2009 - the worst year since the Great Depression for hotels.

Through March 8th, the 4-week average of the occupancy rate is tracking slightly higher than pre-recession levels.   

It looks like 2014 should be a solid year for hotels.

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