Thursday, May 02, 2019

Hotels: Occupancy Rate Decreased Year-over-year

by Calculated Risk on 5/02/2019 05:42:00 PM

From HotelNewsNow.com: STR: U.S. hotel results for week ending 27 April

The U.S. hotel industry reported negative year-over-year results in the three key performance metrics during the week of 21-27 April 2019, according to data from STR.

In comparison with the week of 22-28 April 2018, the industry recorded the following:

Occupancy: -1.4% to 68.9%
• Average daily rate (ADR): -1.4% to US$128.66
• Revenue per available room (RevPAR): -2.9% to US$88.59

STR analysts attribute steep performance declines in many major markets to group business decreases on Easter Sunday and the Monday that followed. The corresponding days from 2018 were non-holiday dates.
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 decent start for 2019, close - to-date - compared to the previous 4 years.

Seasonally, the occupancy rate will mostly move sideways during the Spring, and then increase during the Summer travel season.

Data Source: STR, Courtesy of HotelNewsNow.com