The U.S. hotel industry recorded positive results in the three key performance measurements during the week of 18-24 October 2015, according to data from STR, Inc.The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average. Hotels are now in the Fall business travel season.
In year-over-year measurements, the industry’s occupancy increased 1.7% to 70.6%. Average daily rate for the week was up 4.6% to US$124.76. Revenue per available room increased 6.4% to finish the week at US$88.08.
The red line is for 2015, dashed orange is 2014, blue is the median, and black is for 2009 - the worst year since the Great Depression for hotels. Purple is for 2000.
I added 2001 (yellow) to show the impact of 9/11/2001 on hotel occupancy. Occupancy was already down in 2001 due to the recession, and really collapsed following 9/11.
For 2015, the 4-week average of the occupancy rate is solidly above the median for 2000-2007, and above last year.
Right now 2015 is above 2000 (best year for hotels), and 2015 will probably be the best year ever for hotels. This is why lodging investment is up 39% year-over-year!
1) 2015 67.7%
2) 2000 67.1%
3) 2014 66.6%
Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com