Friday, August 31, 2018

Hotels: Occupancy Rate Unchanged Year-over-Year

by Bill McBride on 8/31/2018 08:46:00 AM

From HotelNewsNow.com: STR: US hotel results for week ending 25 August

The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the week of 19-25 August 2018, according to data from STR.

In comparison with the week of 20-26 August 2017, the industry recorded the following:

Occupancy: flat at 69.5%
• Average daily rate (ADR): +1.8% to US$127.55
• Revenue per available room (RevPAR): +1.8% to US$88.69
...
STR analysts note that percentage changes in several markets were negatively affected by a comparison with the week of the Great American Eclipse in 2017. emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four week average.

Hotel Occupancy RateClick on graph for larger image.

The red line is for 2018, dash light blue is 2017 (record year due to hurricanes), blue is the median, and black is for 2009 (the worst year probably since the Great Depression for hotels).

The occupancy rate, to date, is close to the record year in 2017.  Note: 2017 finished strong due to the impact of the hurricanes.

On a seasonal basis, the 4-week average of the occupancy rate will decline into the Fall.

Data Source: STR, Courtesy of HotelNewsNow.com