Friday, November 09, 2018

Hotels: Occupancy Rate Decreased Year-over-year

by Bill McBride on 11/09/2018 10:55:00 AM

From HotelNewsNow.com: STR: US hotel results for week ending 3 November

The U.S. hotel industry reported mostly flat year-over-year results in the three key performance metrics during the week of 28 October through 3 November 2018, according to data from STR.

In comparison with the week of 29 October through 4 November 2017, the industry recorded the following:

Occupancy: -0.7% to 62.9%
• Average daily rate (ADR): +0.7% to US$124.81
• Revenue per available room (RevPAR): -0.1% to US$78.54

Houston, Texas, registered the steepest declines in occupancy (-23.5% to 60.6%) and RevPAR (-30.8% to US$61.90). Houston’s hotel performance was lifted in the weeks and months that followed Hurricane Harvey in 2017 as properties filled with displaced residents, relief workers, insurance adjustors, media members, etc.
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).

This is the fourth strong year in a row for hotel occupancy.  The occupancy rate, year-to-date, is just ahead of the record year in 2017.

Seasonally, the occupancy rate will now decline through the end of the year.

Data Source: STR, Courtesy of HotelNewsNow.com