Tuesday, January 02, 2018

Hotels: Strong Finish to 2017, Record Occupancy due to Hurricanes

by Calculated Risk on 1/02/2018 02:14:00 PM

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

The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the week of 17-23 December 2017, according to data from STR.

In comparison with the week of 18-24 December 2016, the industry recorded the following:

Occupancy: +7.1% to 45.1%
• Average daily rate (ADR): +0.5% to US$106.97
• Revenue per available room (RevPAR): +7.6% to US$48.28

Among the Top 25 Markets, Houston, Texas, reported the largest increase in each of the three key performance metrics: occupancy (+33.5% to 50.9%), ADR (+17.3% to US$92.28) and RevPAR (+56.7% to US$47.00).
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Note: The hurricanes continue to drive demand in Texas and Florida, especially in Houston.

The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Hotel Occupancy RateThe red line is for 2017, dash light blue is 2016, dashed orange is 2015 (now 2nd best year on record), blue is the median, and black is for 2009 (the worst year since the Great Depression for hotels).

Currently the occupancy rate, to date, is ahead of the record year in 2015.  The hurricanes will push the annual occupancy rate to a new record in 2017.

Data Source: STR, Courtesy of HotelNewsNow.com