Monday, September 10, 2018

Hotels: Occupancy Rate On Pace for Record Year

by Bill McBride on 9/10/2018 12:28:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 1 September

The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the week of 26 August through 1 September 2018, according to data from STR.

In comparison with the week of 27 August through 2 September 2017, the industry recorded the following:

Occupancy: +1.6% to 67.0%
• Average daily rate (ADR): +3.0% to US$125.16
• Revenue per available room (RevPAR): +4.6% to US$83.88
...
In comparison with the week that followed the landfall of Hurricane Harvey in 2017, Houston, Texas, reported the steepest declines in ADR (-4.2% to US$95.94) and RevPAR (-19.2% to US$55.94). The market also matched for the largest drop in occupancy (-15.6% to 58.3%).
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, 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 just ahead of the record year in 2017.

Note: 2017 finished strong due to the impact of the hurricanes, but the overall occupancy was up this week year-over-year even though the Houston area saw a sharp year-over-year decline (boosted last year by Hurricane Harvey).

Data Source: STR, Courtesy of HotelNewsNow.com