Thursday, January 24, 2019

Hotels: Occupancy Rate Increased Year-over-year

by Bill McBride on 1/24/2019 04:06:00 PM

From HotelNewsNow.com: STR: US hotel results for week ending 19 January

The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the week of 13-19 January 2019, according to data from STR.

In comparison with the week of 14-20 January 2018, the industry recorded the following:

Occupancy: +5.0% to 58.4%
• Average daily rate (ADR): +3.4% to US$124.32
• Revenue per available room (RevPAR): +8.5% to US$72.54

STR analysts partially attribute the week’s substantial growth figures to a calendar shift. Growth for Monday of the week was especially pronounced due to comparison with Martin Luther King, Jr. Day last year: 14 January 2019 (standard business day) vs. 15 January 2018 (MLK Day). Significant performance increases were also noticeable on Saturday of the week. That was likely due in part to the Women’s March as well as the long weekend that ended with this year’s MLK Day.
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 2019, dash light blue is 2018, blue is the median, and black is for 2009 (the worst year probably since the Great Depression for hotels).

A solid start for 2019.

Seasonally, the occupancy rate will increase over the next couple of months.

Data Source: STR, Courtesy of HotelNewsNow.com