Thursday, August 07, 2014

Hotels: Occupancy up 4.5%, RevPAR up 11.0% Year-over-Year

by Calculated Risk on 8/07/2014 05:27:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 2 August

The U.S. hotel industry recorded positive results in the three key performance measurements during the week of 27 July through 2 August 2014, according to data from STR.

In year-over-year measurements, the industry’s occupancy rate rose 4.5 percent to 76.3 percent. Average daily rate increased 6.2 percent to finish the week at US$118.70. Revenue per available room for the week was up 11.0 percent to finish at US$90.54.
emphasis added
Note: ADR: Average Daily Rate, RevPAR: Revenue per Available Room.

The occupancy rate probably peaked for 2014 during the last week in July at 77.9%.  Before this year, the previous weekly high for the occupancy rate was late in July 2000 at 77.0%.

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, blue is the median, and black is for 2009 - the worst year since the Great Depression for hotels.  Purple is for 2000.

The 4-week average of the occupancy rate is solidly above the median for 2000-2007, and is at the same level as in 2000. 

Right now it looks like 2014 will be the best year since 2000 for hotels.   A very strong year ...

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