Friday, August 29, 2014

Hotels: Occupancy up 5%, RevPAR up 11.0% Year-over-Year

by Calculated Risk on 8/29/2014 02:06:00 PM

From HotelNewsNow.com: STR: US results for week ending 23 August

The U.S. hotel industry recorded positive results in the three key performance measurements during the week of 17-23 August 2014, according to data from STR.

In year-over-year measurements, the industry’s occupancy rate rose 5.0 percent to 70.6 percent. Average daily rate increased 5.4 percent to finish the week at US$116.13. Revenue per available room for the week was up 10.7 percent to finish at US$82.04.
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Note: ADR: Average Daily Rate, RevPAR: Revenue per Available Room.

The occupancy rate has peaked for the year.

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 slightly above the level for the same week in 2000 (the previous high). 

Right now it looks like 2014 will be the best year since 2000 for hotels.   Since it takes some time to plan and build hotels, I expect 2015 will be a record year for hotel occupancy. Note: Smith Travel analysts say that supply growth will pickup next year, but remain relatively slow, "hotel supply growth in the United States is forecast to be 1% this year and 1.3% in 2015".

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